02.03.202600:08:50UTC+00Australian Shares Retreat on Geopolitical Tensions

The S&P/ASX 200 fell 0.5% to 9,158 on Monday, pulling back from record highs as global risk sentiment weakened amid escalating tensions in the Middle East. Geopolitical risks intensified after US and Israeli strikes on Iran over the weekend, following Tehran’s refusal to curb its nuclear program. Iran retaliated after the attacks reportedly killed Supreme Leader Ayatollah Ali Khamenei.

On the domestic front, the manufacturing PMI for February 2026 was revised down to 51.0 from a preliminary estimate of 51.5, the lowest reading in four months and a slowdown from 52.3 in January.

Banking stocks led the declines, with Commonwealth Bank of Australia, National Australia Bank, Westpac Banking Corporation, and ANZ Group Holdings dropping between 2.7% and 3.3%. In contrast, energy producers Woodside Energy and Santos climbed 5.7% and 6.4%, respectively, while gold miners Newmont Corporation, Northern Star Resources, and Evolution Mining advanced between 4.8% and 6.4% on the back of higher commodity prices.