The S&P/ASX200 was down a modest 9 points, or 0.1 per cent, to 8678 on Thursday, while the broader All Ordinaries had slipped 12.6 points lower, or 0.14 per cent, to 8903.1.
Oil prices cracked $US120 a barrel to a fresh four-year high as an extended naval blockade of Iran was ordered by United States President Donald Trump, keeping the Strait of Hormuz effectively shut.
Following Australia's elevated, fuel-driven inflation print that cemented expectations for a third interest rate hike for 2026, the US central bank kept its benchmark rate on hold, as expected, but with unusually high levels of dissent among committee members.
Australian supermarket chain Woolworths warned higher fuel costs due to the war in the Middle East were weighing on customers and adding to operating costs, signalling a less certain fourth-quarter earnings outlook under a prolonged energy crisis.
Wall Street was subdued overnight though strong growth reported by major artificial intelligence players cushioned weakness elsewhere.
Australian tech stocks were outperforming other sectors at lunchtime on Thursday, led higher by software company WiseTech, up 5.9 per cent, and data centre operator NextDC, up 1.7 per cent.
Energy, industrials, telcos, property and financial stocks were also higher, with all the big banks on the rise, led by ANZ, up 2 per cent.
Mining stocks were broadly lower though lithium and iron ore player Mineral Resources defied the trend with a 5.7 per cent gain after upgrading its full-year guidance across parts of the business.
