Geopolitical tensions are spooking investors, with Australian stocks taking a hit. -AAP Image
Australia's share market has erased most of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment.
Hold tight - we’re checking permissions before loading more content
The S&P/ASX200 fell 22 points, or 0.27 per cent, to 8,542.3, as the broader All Ordinaries gave up 31.6 points, or 0.36 per cent, to 8,764.4.
Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israel's air strikes on Iranian military targets and nuclear facilities prompted Iran to launch retaliatory drone strikes a few hours later.
News of the attacks also weighed on markets in Asia.
As Australian markets closed, Hong Kong's Hang Seng index was down 0.8 per cent while Japan's Nikkei and South Korea's KOSPI had fallen more than one per cent each.
Eight of 11 local sectors fell on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the aftermath of the attacks.
The Australian dollar is buying 64.77 US cents, down from 64.96 US cents on Thursday at 5pm, and slipping more than one per cent immediately after the strikes.
8°C