What happened
The S&P/ASX 200 Energy index jumped 3.91%, helping lift the broader market. Santos surged 5.23% to $8.05 and Beach Energy added 5.45% to $0.87. Gains were driven by rising international crude prices as the Middle East conflict and Strait of Hormuz deadlock continue to disrupt global supply.
Why it matters here
Surging oil prices act as a double-edged sword for Australian portfolios. While boosting domestic energy producers and resources stocks, higher fuel costs exacerbate systemic inflationary pressures, increasing the likelihood that the RBA keeps official interest rates higher for longer.
What to watch
Monitoring Middle East conflict developments, Strait of Hormuz supply updates, and international Brent crude futures movements above US$88 per barrel for price direction.
Source
investing.com