ASX falls as Middle East tensions escalate
The Australian sharemarket has declined at the open as escalating tensions in the Middle East cast doubt on when America and Iran can reach a deal to reopen the Strait of Hormuz, and as technology stocks came under more pressure on Wall Street.
The ASX/S&P 200 was down 80.1 points, or 0.9 per cent, to 8573.1 in early trade after the United States began a fresh round of strikes against multiple targets overnight in Iran. Seven of the local market’s 11 industry sectors were in negative territory. The Australian dollar was trading at US70.01¢.
The latest strikes highlight Trump’s growing impatience with stalled peace efforts after months of failed negotiations. They also suggest that the April ceasefire between the warring countries has effectively collapsed, despite the absence of a return to the large-scale bombing campaigns seen at the start of the conflict.
“We’re going to be attacking them, attacking them very hard,” Trump told reporters at the White House, before the latest strikes were announced. “We hit them hard yesterday, and we’re going to hit them hard again today.”
The escalation in the Persian Gulf sent oil prices higher, with Brent adding 2.3 per cent to $US95.22 and WTI up 2.8 per cent to $US92.55 in early trade in Asia, adding to overnight gains. Energy stocks in turn advanced in early trade on the ASX, with Yancoal rising 3.8 per cent, Woodside Energy up 2.2 per cent and Santos 2.4 per cent higher. Refiners Ampol and Viva Energy also climbed, adding 1.1 per cent and 0.2 per cent, respectively.
Albanese ‘deeply concerned’ about US-Iran war, assures ongoing fuel security
Returning to Albanese’s press conference earlier, the prime minister says the government is “deeply concerned” about the escalating conflict between the US and Iran.
“We are deeply concerned about this escalating crisis. We have continued to call for a de-escalation because of the human impact it will have on people in the Middle East, but also the global impact it’s having on global inflation and on our economy … Every economy in the world is being impacted by this conflict, so we want to see a de-escalation. We’ll continue to examine the issues, including … the price of fuel.”
He said the government would continue engaging with its partners to ensure ongoing fuel security.
“We’ll continue to work, each and every day, in the interests of Australians … We’re very conscious about the pressures that are on people,” Albanese told reporters.
Chalmers launches most impassioned defence of budget yet
Treasurer Jim Chalmers has made his most full-throated defence of his contentious budget while rounding on the Liberal Party and One Nation for wanting no change to a “generational crisis” in the housing market.
Addressing Labor’s national policy forum in Sydney, Chalmers said the beneficiaries of his planned changes to negative gearing and capital gains tax were being drowned out by those benefiting from current tax arrangements.
Chalmers said the position of the Coalition and One Nation was absurd as they claimed the government was pulling up the “ladder of aspiration”.
“Not everybody is born already at the top of the ladder like Angus Taylor was, not everybody fails upwards like he has,” he said.
PM says he does not know or care how much ON has raised in donations
Staying with the prime minister’s press conference, Albanese said he did not know or care whether Pauline Hanson’s party had actually raised more than $1.5 million, as he said there was no evidence the donation count was real.
Asked by a reporter about Hanson’s claims she had smashed Labor in the fundraising race, Albanese said: “Did she, though? Did she, what evidence is there?”
Another reporter asked a follow-up question: “Do you believe Pauline Hanson has raised $1.5 million?”
The PM responded: “Well, you work it out”.
Albanese says Pasin’s call for seat-sharing deal with One Nation ‘extraordinary’
Prime Minister Anthony Albanese is in Sydney holding a press conference, and was just asked about yesterday’s reports that Liberal MP Tony Pasin called on the Liberal Party to negotiate a seat-sharing deal with One Nation.
“This is an extraordinary statement from Tony Pasin,” Albanese told reporters.
“Saying that the Liberal Party should give up on trying to win seats, should step aside, so … One Nation wouldn’t run in some seats where the Liberal Party wants to contest. That says it all about the way that the once-mainstream Liberal Party … is almost giving up, two years before an election is held.”
This morning, Opposition Leader Angus Taylor denied the reports, insisting there would be no seat-sharing deal between the Liberal Party and One Nation.
Minns concedes prison not deterring teens from organised crime
Lengthy prison sentences and high arrest rates aren’t working to deter young people from engaging in organised crime, Premier Chris Minns has conceded.
His comments come after a father and his daughter were confronted by a gunman at school pick-up, and a week after a 17-year-old allegedly opened fire in broad daylight at a Punchbowl wake.
“For some reason, that isn’t being communicated to these people, that their chances of committing an offence and getting away with it are close to zero, and yet they continue to do it anyway,” Minns said.
The premier said he’d work with the police commissioner to provide any resources needed to crack down on organised crime networks that are younger and more brazen than ever.
Fiery on-air clash between MPs on Iran war
As conflict in the Middle East continued to escalate after the US resumed strikes on Iran, parliamentarians from across the political spectrum clashed on the best way forward for Australia in an increasingly volatile geopolitical environment.
Nationals MP Kevin Hogan and Greens senator David Shoebridge wound up in a fiery exchange on Sky News earlier this morning, as Hogan accused Shoebridge of failing to criticise Iran and Shoebridge accused Hogan of failing to criticise Trump.
“You have said nothing negative in any time we’ve spoken about this conflict between Iran and the US, and I respect that you are going to have some criticism of the US government. I respect that. I listen to you when you say that, but not once, not once have you criticised … the regime in Iran,” Hogan told Shoebridge.
JB Hi-Fi to refund 200 customers over misleading prices
JB Hi-Fi will issue more than $250,000 to about 200 customers who bought laptops, VR headsets and a gaming monitor under potentially misleading promotions – but the national watchdog has warned against scammers hoping to capitalise on the refund announcement.
A national watchdog investigation into the tech retailer between March to September 2025 found it had promoted 17 products at prices allegedly discounted from a higher price. However, those products were only sold at a higher price for a short time; the higher price was long before the promotion ran; or were never sold at the higher price at all.
ACCC Commissioner Luke Woodward said businesses must not mislead consumers with false “was” prices.
“It is critical that businesses ensure that pricing information provided to consumers is accurate, and that discount deals are genuine,” he said. “We will not hesitate to take appropriate action when we see evidence of breaches of the Australian Consumer Law.”
Inflation will sting Aussies heading to World Cup with weaker dollar
Australians heading to the US for the World Cup are about to be stung by a weaker dollar as expectations of interest rate changes in the two nations swing, after high inflation figures in the world’s biggest economy.
Data overnight showed US inflation at 4.2 per cent in the year to May with a combination of high oil prices caused by the war against Iran, American tariffs and the continued surge in activity due to America’s data centre boom all putting upward pressure on prices.
It immediately meant investors started lifting their expectations that America’s central bank, the Federal Reserve, will be lifting interest rates by year’s end.
Combined with investors starting to believe the Reserve Bank may not lift rates here, it pushed the Australian dollar below US70 cents for the first time since early April.
Seven’s owner to slash up to 300 jobs
Southern Cross Media, the business created from the merger of Kerry Stokes Seven West and radio group Southern Cross, announced a profit downgrade and massive job cuts as market conditions continue to deteriorate.
Heavy job cuts at Seven were foreshadowed in a report from this masthead yesterday.
Southern Cross said its businesses “are performing well in market conditions that have deteriorated materially more than anticipated” through the current quarter, with revenue and earnings both expected to be below previous forecasts.
The company said it has now commenced another significant cost reduction program to deliver annual run-rate cost reductions of up to $150 million upon its conclusion, largely from the loss of 250 to 300 jobs – mostly from the TV side of the business.
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