Australian shares tumble as geopolitical tensions escalate. The S&P/ASX 200 fell 0.4% to 8,926 points following collapsed U.S.-Iran peace talks and a U.S. military blockade of Iranian ports, erasing last week's 4.4% gains. Brent crude surged above $100 per barrel amid supply concerns, creating a stagflationary environment that pressures equity valuations. Gold miners dropped 2.1% as the bullion slipped on dollar strength, while tech stocks declined 1.8%. Energy stocks bucked the trend, gaining 2.1% with Woodside Energy up 2.7%. New Zealand's NZX 50 fell 1.2%, weighed down by a2 Milk's 12.4% plunge after cutting profit guidance due to supply chain disruptions in China operations. Analysts warn prolonged strait closures could trigger significant earnings drags and sustained upward pressure on interest rates.
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