ASX Soars Despite Iran Conflict: Gold and Oil Stocks Shine
Updated: March 2, 2026, 4:20 PM
The Australian Securities Exchange (ASX) witnessed a remarkable surge, reaching an all-time high, as the escalating conflict in the Middle East triggered a rush for gold and oil stocks. This unexpected twist in the market narrative has investors on the edge of their seats, with some sectors soaring while others face uncertainty.
Key Takeaways:
Record Close: The ASX 200 Index hit a new record, gaining 2.3 points to close at 9200.90, marking the fourth consecutive day of record highs. This was largely driven by the surge in gold and oil prices.
Geopolitical Turmoil: The assassination of Iran's supreme leader by US-Israeli forces sparked a volatile market response. Brent crude oil prices skyrocketed by 5.8% to $77.09 per barrel, and gold prices rose 1.4% to $5350 per ounce, as Iran retaliated against neighboring Gulf countries.
Sector Performance:
- Energy Sector: Energy stocks soared, with Woodside, Santos, and Karoon witnessing significant gains of 6.8%, 6.7%, and 15.2%, respectively, due to the oil price hike.
- Gold Miners: Gold mining companies like Newmont, Resolute Mining, and Genesis Minerals saw substantial increases, with investors seeking safe-haven assets.
- Defense Sector: DroneShield, a counter-drone solutions provider, rose by 6.6%, highlighting the potential impact of the conflict on defense-related industries.
Market Uncertainty: eToro analyst Josh Gilbert emphasized the market's aversion to uncertainty, stating that the duration of the conflict's disruption is a critical factor for investors. The situation in the Middle East has created a complex environment for investors, with potential long-term implications.
Financial Sector Drag: Financial stocks faced pressure, with the 'Big Four' lenders and some money managers experiencing selling. Commonwealth Bank, ANZ, Westpac, and National Australia Bank saw declines, following a slump in US banks and private equity firms.
Corporate News:
- Magellan Financial: The company remained in a trading halt as it prepared for a significant equity raising to fund its merger with Barrenjoey Capital Partners.
- Lynas Rare Earths: The company's shares rose after Malaysia's atomic energy regulator extended its operating license for a decade.
- Ampol: The ACCC's assessment of the proposed EG Australia takeover identified potential competition concerns at 54 sites, boosting Ampol's shares.
But here's where it gets controversial: As the conflict unfolds, the ASX's resilience raises questions about the market's ability to withstand geopolitical shocks. Are gold and oil stocks the new safe havens, or is this a temporary bubble? And what does this mean for the broader economy?
And this is the part most people miss: The Middle East conflict's impact on aviation and travel stocks is significant, with Qantas and Web Travel experiencing notable declines. As the situation evolves, investors must navigate the fine line between opportunity and risk.
What's your take? Do you think the ASX's surge is a sign of market resilience or a temporary reaction to geopolitical events? Share your thoughts in the comments below, and let's explore the complexities of this intriguing market scenario.
