The ASX 200 is soaring to new heights, but it's not all smooth sailing. The conflict in Iran is casting a long shadow over the market.
As of March 2, 2026, the Australian sharemarket reached a record high, with investors flocking to gold miners and oil stocks. This surge was triggered by the tragic loss of Iran's supreme leader, Ali Khamenei, in US-Israeli strikes, which sent commodity prices skyrocketing.
The S&P/ASX 200 Index climbed to 9200.90, marking its fourth consecutive record-breaking session. Five out of eleven sectors saw gains, as investors sought safe havens like the US dollar and gold. However, Wall Street is bracing for a potential sell-off, with futures pointing to a 1% decline in major indices.
But here's where it gets controversial... The critical question on everyone's mind is how long this conflict will persist. eToro's Josh Gilbert puts it bluntly: "Markets hate uncertainty, and right now, investors are facing a highly uncertain geopolitical landscape."
The energy sector is a bright spot, surging nearly 5% on higher oil prices. Woodside, Santos, and Karoon are leading the charge, with impressive gains. The flight to gold has also lifted mining stocks, with Newmont, Resolute Mining, and Genesis Minerals all seeing significant increases.
However, not all sectors are faring well. DroneShield, a counter-drone solutions firm, is up, but Qantas and Web Travel are down due to the Middle East conflict's impact on international aviation. Financials are also under pressure, with the big four lenders and money managers seeing losses.
And this is the part most people miss... The conflict's disruption to key aviation hubs and oil shipments through the Strait of Hormuz is having a ripple effect. Brent crude prices are up 5.8%, while gold has gained 1.4%. Iran's retaliatory strikes on nearby Gulf countries have further escalated tensions.
In the corporate world, MA Financial agreed to sell Infinite Care, delivering a substantial return to investors, yet its stock still fell. WiseTech Global, Xero, and NextDC also saw continued selling pressure in the technology sector. Magellan Financial remains in a trading halt as it works on a merger with Barrenjoey Capital Partners.
On a positive note, Lynas Rare Earths gained ground as its operating license was renewed in Malaysia, and Ampol rose as the ACCC's assessment of the proposed takeover identified fewer competition concerns than initially flagged.
As the ASX 200 continues its record-breaking run, the impact of the Iran conflict remains a wild card. Will the market's resilience hold, or will uncertainty prevail? What do you think? Share your thoughts in the comments below!
