Australian shares slip as mining losses outweigh energy gains on Mideast conflict
July 14 (Reuters) - Australian shares edged lower on Tuesday as losses in miners and banks outweighed gains in energy stocks driven by fears that the Middle East conflict could disrupt oil shipments through the key Strait of Hormuz.
The S&P/ASX 200 index .AXJO fell 0.2% to 8,787.10 by 0006 GMT after closing flat in the previous session.
The U.S. carried out a third consecutive night of strikes against Iran on Monday and two tankers came under fire in the Strait of Hormuz, after President Donald Trump said Washington was reinstating its blockade of Iranian shipping in the Gulf.
Oil prices jumped more than 9% overnight, helping Australian energy stocks .AXEJ rise as much as 3% in early trade on Tuesday and hit their highest since June 15. Sector majors Santos STO.AX and Woodside Energy WDS.AX climbed 2.6% and 3.6%, respectively. O/R
Heavyweight miners .AXMM fell 0.4%, tracking weaker iron ore prices as markets braced for possible production cuts by Chinese steel mills. IRONORE/
Sector giant Rio Tinto RIO.AX slid 0.1% ahead of its second-quarter production results on Wednesday.
Gold stocks .AXGD fell 2.3% and were on track for their biggest drop since July 8, tracking softer bullion prices on expectations of higher-for-longer U.S. interest rates. GOL/
Evolution Mining EVN.AX and Northern Star Resources NST.AX declined 1.7% and 3.1%, respectively.
Financials .AXFJ fell 0.4%, with the "Big Four" banks down between 0.4% and 0.9%.
Industrials .AXNJ slipped 0.8%, with Worley WOR.AX, Qantas QAN.AX and Virgin Australia VGN.AX shedding between 2% and 2.6%.
Technology stocks .AXIJ slipped 1.1% after Wall Street peers closed lower overnight. Xero XRO.AX fell 0.5%, while NEXTDC NXT.AX slumped 2.2%. .N
Further south, New Zealand's benchmark S&P/NZX 50 index .NZ50 fell 0.3% to 13,681.91.
Reserve Bank of New Zealand Chief Economist Paul Conway said higher oil prices could push up inflation expectations and may require further interest-rate increases.
