April 13 (Reuters) – Australian shares fell on Monday with miners outweighing gains in energy stocks, as investor appetite for risk assets weakened after peace talks between the U.S. and Iran broke down and the U.S. Navy prepared a blockade of the Strait of Hormuz.
The S&P/ASX 200 index declined 0.4% to 8,925.60 by 0038 GMT after a 4.4% gain last week.
Markets remained on edge as uncertainty lingered over when the U.S.–Iran war would end after weekend talks ended without a breakthrough, with U.S. President Donald Trump later saying he believed Iran would continue negotiations.
Meanwhile, there appears to be few signs of a resumption in Middle East energy flows, with Trump saying Washington would begin blockading the Strait of Hormuz, while Iran warned that any approaching military vessel would be treated as violating the ceasefire.
In Sydney, energy was one of the two advancing sectors, rising 3.3% after oil prices jumped above $100 a barrel. Woodside and Santos climbed between 2% and 3%.
Shares of Viva Energy rose more than 4%, even as the company flagged a $17.5 million impairment charge after a regulatory review.
Gold stocks slumped 3.5%, dragging down the broader mining index 0.9%, as bullion prices fell more than 2%, pressured by a stronger U.S. dollar. Evolution Mining and Northern Star Resources fell more than 4% each.
Financials slipped 0.2% after a four-session rising streak, with the big four banks down between 0.2% and 1.1%.
With the Middle East war raising inflation risks and clouding the cash rate outlook, consumer discretionary and real estate stocks lost 1% and 0.3%, respectively.
Among individual stocks, Monash IVF jumped 16.5% after it received a higher buyout offer from a consortium.
In New Zealand, the benchmark S&P/NZX 50 index fell 1.1% to 13,032.28.
Shares of a2 Milk dropped 17.3% after the company cut its fiscal 2026 profit forecast, saying temporary supply chain disruptions would affect availability of its China-label infant milk formula.
Fonterra shares rose 7.2% after the company appointed a new chief executive. (Reporting by Shruti Agarwal in Bengaluru; Editing by Subhranshu Sahu)
