ASX 200 drops as soaring oil prices rattle global markets

The S&P/ASX 200 Index (ASX: XJO) is trading lower on Monday as another jump in oil prices weighs on global markets.

At the time of writing, the benchmark index is down 0.38% to 8,772 points after briefly moving above 8,820 earlier in the session.

The selling is spread across much of the market, with 118 ASX 200 shares trading lower, compared with 75 in positive territory and 7 stocks unchanged.

However, gains from the major banks and several energy shares are helping keep the decline from becoming much larger.

Here’s what is behind today’s fall.

Oil jump rattles global markets

The latest weakness follows another escalation in the conflict between the United States and Iran over the weekend.

Brent crude oil futures have climbed around 4% to more than US$79 a barrel, while West Texas Intermediate (WTI) crude is trading above US$74.

Concerns remain centred on the Strait of Hormuz and the potential disruption to energy shipments through the key waterway.

The oil rise is also adding to inflation concerns and has pushed US futures lower ahead of Monday night’s session.

S&P 500 Index (SP: .INX) futures are down 0.48%, while Nasdaq Composite Index (NASDAQ: .IXIC) futures are falling 1.12%.

Asian markets are also mostly lower. South Korea’s Kospi has dropped around 5%, while Japan’s Nikkei is down more than 1%.

Tech, healthcare and miners in the red

The weaker global lead is hitting several of the ASX 200’s larger growth and resources stocks.

Xero Ltd (ASX: XRO) shares are down 3.57% to $70.78, while WiseTech Global Ltd (ASX: WTC) has tumbled 2.32% to $33.21.

ResMed Inc (ASX: RMD) shares have dropped 5.53% to $28.37, and CSL Ltd (ASX: CSL) is 0.94% lower at $121.73.

The major miners are also weighing on the index. BHP Group Ltd (ASX: BHP) shares are down 0.70% to $57.87, while Rio Tinto Ltd (ASX: RIO) has slipped 0.58% to $163.53.

Mineral Resources Ltd (ASX: MIN) is among the heavier fallers, sinking 4.12% to $57.24.

Consumer staples are also lower. Woolworths Group Ltd (ASX: WOW) shares are down 1.07% to $39.73, while Coles Group Ltd (ASX: COL) has dipped 1.66% to $23.17.

Banks and energy shares provide support

The ASX 200 would be much lower without support from the major banks.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.26% to $169.30. Westpac Banking Corp (ASX: WBC) has added 0.30% to $36.65, National Australia Bank Ltd (ASX: NAB) is 0.43% higher at $39.78, and ANZ Group Holdings Ltd (ASX: ANZ) has gained 0.69% to $36.30.

Higher oil prices are also helping some energy stocks. Woodside Energy Group Ltd (ASX: WDS) shares are up 0.33% to $29.15.

The post ASX 200 drops as soaring oil prices rattle global markets appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, ResMed, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended ResMed, WiseTech Global, and Xero. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.