ASX 200 down as fresh missile strikes on energy assets send oil prices higher

S&P/ASX 200 Index (ASX: XJO) shares are down 1.5% as new missile strikes send oil prices higher and stoke fears of a protracted war.

The ASX 200 has now fallen 7.4% since the US and Israel launched strikes on Iran on 28 February (US time).

The Brent crude oil price jumped 4% to US$112 per barrel today after new missile attacks on energy infrastructure in the Middle East.

Trading Economics analysts explained the spike:

… fresh attacks on key energy infrastructure in the Middle East heightened concerns over disruptions to global oil and gas flows.

Iran launched missile strikes on a Qatari facility housing the world’s largest LNG export plant, marking one of several energy assets Tehran vowed to target following an Israeli strike on Iran’s South Pars gas field.

US President Donald Trump said he had prior knowledge of the Israeli attack on the South Pars field but urged against further strikes on Iranian energy sites.

The Brent crude oil price is now almost 11% higher over the week and 55% higher over the past 30 days.

The war has effectively shut down the Strait of Hormuz.

More than 20% of the world’s global oil and gas exports, mostly from Iran, Iraq, Qatar, and the UAE, pass through the strait.

The shutdown has led to several Middle Eastern oil producers curbing production as storage systems fill up and container ships sit still.

ASX 200 energy shares soar amid red day for market

The oil price spike has sent several ASX 200 energy shares soaring today.

The Woodside Energy Group Ltd (ASX: WDS) share price is up 6.5% to $33.46.

Santos Ltd (ASX: STO) shares are up 3.5% to $8.05 apiece.

The Beach Energy Ltd (ASX: BPT) share price is up 4.6% to $1.29.

Ampol Ltd (ASX: ALD) shares are 5.1% higher at $33.12, while Viva Energy Group Ltd (ASX: VEA) is up 16.4% to $2.46.

The ASX 200 experienced a partial rebound after the Bureau of Statistics revealed a 0.2% lift in the unemployment rate to 4.3% today.

The unemployment rate lifted mainly due to a 0.2% expansion in the participation rate.

The softer-than-expected labour data eased the risk of further interest rate hikes, causing a positive market reaction.

However, the partial rebound was not enough to change the ASX 200’s trajectory for the day.

Lucinda Jerogin, Associate Economist at Commonwealth Bank of Australia (ASX: CBA), said the war and rising energy costs were creating risks for the Aussie jobs outlook.

While the labour market remains on the tighter side today, Jerogin said: “We do see upside risks to the unemployment rate from here.”

Jerogin commented:

… the participation rate will be one area to watch in upcoming labour force surveys as cost-of-living pressures worsen amid higher inflation and fuel costs related to the War in Iran. This may induce people back into the workforce.

The post ASX 200 down as fresh missile strikes on energy assets send oil prices higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.