PEAK ASSET: ARVO WRAP 4 March: ASX dives 1.9pc in $63b Middle East wipeout; gold miners tumble | Coal prices jump as LNG disrupted by Mideast war | OD6 moves on district-scale fluorspar play in Nevada |

Wondering where the US has military bases in the Middle East and which ones were hit by Iran? 

See ‘pic of the day’ below

Across Markets…

The Australian sharemarket dived on Wednesday, erasing more than $60 billion from its market capitalisation, after fears of a widening Middle East war roiled equity markets around the world and a soaring oil price raised inflation fears.

The S&P/ASX 200 plunged 176.1 points, or by 1.9 per cent, to 8901.2, wiping $63 billion from the market capitalisation as traders pivoted away from risk assets. It was the benchmark’s second-biggest drop since April.

Selling accelerated across Asia. South Korea’s benchmark fell as much as 10 per cent as investors rushed to pull money from one of the world’s hottest sharemarkets, while Thai stocks dropped 8 per cent.

Higher oil prices and the impact on inflation is a central fear for investors, with bond traders dialling back US rate cut bets. A further spike in the oil price may grind down the global economy and sap corporate profits.

“Markets are recognising the Iran conflict could be drawn out and more disruptive to the world economy than initially thought,” Moomoo Australia dealing manager Paco Chow said.

Adding to inflation fears was GDP data showing the economy expanded by 2.6 per cent in the fourth quarter, exceeding economists’ forecasts. Money markets are now pricing in a 33 per cent chance of a second rate increase from the Reserve Bank later this month.

On the ASX, all 11 industry groups closed in the red, led by materials, banks and the rate-sensitive property sector.

Gold added 1.5 per cent to $US5164, recovering from heavy falls of as much as 6 per cent overnight, as markets repriced interest rate bets. The price action still dragged on the gold producers, Newmont finished down 6.3 per cent to $171.86, Westgold Resources lost 7.1 per cent to $7.41, and West African Resources fell 7.4 per cent to $3.26.

Iron ore giants were also sold as the price of the steelmaking ingredient extended its decline below $US100 a tonne in Singapore. BHP fell 3.5 per cent to $55.68, Fortescue dropped 3 per cent to $19 and Rio Tinto shed 1.6 per cent to $162.70.

Even the energy sector was weaker as the market took profits after recent gains and the US said it would escort oil tankers through the Strait of Hormuz to ease fears of a supply disruption.

Oil was still up 0.6 per cent to $US81.85 a barrel after spiking earlier in the session. Woodside Energy edged up 0.9 per cent to $30.75 while Santos dropped 0.4 per cent to $7.25. Profit-taking also hit the uranium producers, with Paladin Energy off 7.6 per cent to $12.58, while Whitehaven Coal firmed 1.8 per cent to $8.34 after coal prices jumped 7.3 per cent as the market looks to fill an LNG shortfall.

Source: AFR