Live: ASX likely to tumble, oil hits two-month high amid US-Iran strikes

Australian shares were set for a sharp fall after fresh US strikes against Iran pushed oil prices to a two-month high and renewed inflation concerns.

ASX futures fell 0.9% to 8,934 points in early trading indications. The ASX 200 had closed Tuesday down 0.1% at 9,067 points. Brent futures rose 5.2% to $US95.15 a barrel, while spot gold fell 2.7% to $US4,329 an ounce.

The increase in oil prices contributed to a global sell-off in government bonds and losses on Wall Street. The Dow Jones fell 0.8%, the S&P 500 dropped 0.7%, and the Nasdaq Composite declined 1%.

The US 10-year Treasury yield reached 4.8%, its highest level since January 2025, as investors sought higher returns. The US dollar strengthened as markets raised the estimated chance of a Federal Reserve rate increase at the end of September to 68%. The Australian dollar fell 0.3% to 71.5 US cents.

The live finance blog also reported a separate investigation into tampered Apple gift cards sold at major Australian supermarkets. Coles identified a suspected scam and NSW Police tracked down and arrested a man, according to the blog.