ASX 200
Team Veye   March 16, 2026

Middle East Tension Impacting Energy Stocks On The ASX

Team Veye   March 16, 2026
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Geopolitical tensions in the Middle East have affected global energy prices and the ripple effects are reflected in the stock prices of ASX energy stocks.

The conflict in the Middle East has affected global energy markets and energy stocks on the ASX last week finished as the only sector in positive territory which placed them ahead of the other ten sectors while the broader market remained weak.

The S&P/ASX 200 Index fell 2.64% last week because investors feared that the war involving Iran could turn into a long conflict.

Markets worry that a prolonged conflict could keep global oil prices high for a longer period which could create wider economic effects.

Higher oil prices usually lead to higher petrol and gas costs which can push inflation upward across economies.

Such pressure can make the interest rate outlook more uncertain because central banks may need to keep monetary policy tight to control inflation.

The markets were volatile as crude prices at the start of last week jumped almost 25% and reached nearly US$120 per barrel. Prices then dropped sharply to below US$90 the next day. Oil now trades around US$100 per barrel as markets try to account for geopolitical risk.

The rise in energy prices supported Australian producers which helped Woodside Energy Group Ltd (ASX: WDS) gain 2.88% over the past week and has surged 22.7% over the past month.

Several other companies also surged which include Santos Ltd (ASX: STO), Beach Energy Ltd (ASX: BPT), Ampol Ltd (ASX: ALD), Viva Energy Group Ltd (ASX: VEA) and Karoon Energy Ltd (ASX: KAR) as investor sentiment towards energy improved.
Coal stocks also moved higher because supply disruptions in gas forced some power producers to shift towards coal for electricity generation.

This trend lifted Yancoal Australia Ltd (ASX: YAL), which rose 24% during the week while New Hope Corporation Ltd (ASX: NHC) gained 5.46% in the same period.

If the conflict continues, energy prices may remain elevated which could support additional gains for energy and coal stocks while industries that depend heavily on borrowing may face pressure due to higher inflation and rising interest rates.

(Source : Reuters)

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