Give Trump ‘a new Pine Gap', say experts claiming AUKUS go-slow
AUKUS was announced in 2021, but the government has not picked a nuclear waste site or an east coast submarine base, and there are concerns about the speed of planning for a shipyard in Henderson, Western Australia.
Australia made the first of six $US500 million ($770 million) payments to boost the capacity of the US submarine industry earlier this year as part of the $368 billion deal, and has hosted visiting American vessels.
The US informed Australia about a 30-day review of the pact weeks ago, which became public on Thursday. Defence Minister Richard Marles said he welcomed the review. 'It's something which is perfectly natural for an incoming administration to do,' he said on the ABC.
Senior Australian government sources, not permitted to speak publicly, said the US stood to gain from AUKUS and believed the review might be designed to gain leverage as Washington pushed Australia to spend more on defence.
Former US ambassador Joe Hockey said bases should be expanded into locations at which the US could perform large volumes of submarine maintenance to help the US overturn a backlog crippling its ability to keep subs in operation.
'It would be enormously important to the Americans and allow for a significant increase in their capability and deterrence value in the region,' Hockey told this masthead. 'Australia is lagging behind.'
The man central to the US' AUKUS review, defence official Elbridge Colby, has previously expressed reservations about handing over nuclear submarines in the early 2030s at the same time as a potential confrontation between China and Taiwan may demand all the US' firepower.
Colby has this year made more positive remarks about AUKUS' first pillar. The review was instituted by Colby, not the White House.
But Colby's focus on war-readiness in the case of a conflict with China – which is far from guaranteed, and may not draw in Australia – has spurred calls to make the AUKUS deal more useful for its short-term focus on China.
Pezzullo, who helmed the 2009 defence white paper, said the Henderson base should be transformed into a joint facility.
'Better still, Australia could establish this shipyard, by treaty, as a joint Australian-US facility, in recognition of its vital role in the alliance, which could be at least as significant as the contribution of the Pine Gap satellite ground station,' he wrote in an article for the Australian Strategic Policy Institute think tank last month. In 2023, the Albanese government dismissed Pezzullo for exerting undue political influence under the previous Coalition government.
'Being able to operate routinely in the Indian Ocean without having to transit the congested littoral waters of Southeast Asia and in the Western Pacific in times of tension and conflict is of immense strategic value to the US,' Pezzullo wrote.
Such a move would likely be contentious and trigger concerns, particularly on the left, about Australian sovereignty and hewing more closely to the US at a time when Western allies and citizens are growing more doubtful about US President Donald Trump's reliability.
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But Shoebridge said Australia was already deeply enmeshed in US military architecture via Pine Gap, a critical intelligence facility near Alice Springs, and the presence of US Marines in Darwin, approved by former prime minister Julia Gillard.
'I think it would be getting to a level with Pine Gap,' Shoebridge said, backing the idea of a bigger plan for Henderson and criticising Labor for the speed of decision-making and funding on AUKUS milestones.
'If we're not doing those long lead-time items, how can we still tell the Americans we are serious about AUKUS?'
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Crossbenchers pressure Labor to launch 'urgent' AUKUS inquiry
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"Given the scale and cost of this deal, a transparent review is not just sensible; it's overdue." Australia is investing billions of dollars to support the US's submarine production base under AUKUS, which is estimated to be 20 years behind schedule. Independent MP Allegra Spender said there needed to be an open discussion about the "very clear risk" that the US will not be able to guarantee the transfer of the boats without diminishing its naval capabilities. "AUKUS is the centrepiece of our defence and foreign policy strategy, but it's been adopted by the major parties with very poor public engagement," Ms Spender said. "AUKUS will shape Australia's future for decades with enormous implications both financially, economically, and strategically, but in discussions at the community level, there are consistent questions and concerns that have not been addressed." Defence Minister Richard Marles has said he remains confident the deal will go ahead and that the US review was a "perfectly natural" thing for a new administration to do. "We've always known that increasing the production and sustainment rate in the United States is a challenge, but we're confident that we can meet that challenge," Mr Marles said on Friday. The Canberra Times has contacted a spokesperson for comment. A parliamentary inquiry into the ratification of the AUKUS treaty last year heard that a provision allowing the US and the UK to withdraw with a year's notice could have "significant implications" for Australia. The inquiry heard there were no specified terms in the treaty or in agreement documents to suggest Australia would have full ownership of the second-hand US-built boats, which are due to be sold and delivered by 2032. Opposition defence spokesman Angus Taylor said he was concerned about the future of AUKUS and called on Prime Minister Anthony Albanese to meet with Donald Trump to secure its terms. "We'll continue to make the case for AUKUS, and we must. It is a good arrangement and the right arrangement to ensure we get peace in our region through deterrence," Mr Taylor said on Friday. Mr Albanese is expected to hold his first in-person meeting with the US president on the sidelines of the G7 summit in Canada next week, which has yet to be confirmed. The potential meeting comes after Labor rebuffed US Defence Secretary Peter Hegseth's call for Australia to increase its military spending to 3.5 per cent of GDP from the current level of just over 2 per cent. ACT senator David Pocock and an alliance of parliamentary crossbenchers are calling on the Albanese government to urgently establish a formal inquiry into the AUKUS submarine deal. It comes after revelations the Trump administration will review the terms of the trilateral pact to ensure it meets "American First criteria", which has sparked doubts about the future of the landmark deal. Eight crossbench MPs wrote to Defence Minister Richard Marles on Friday, raising concerns about the $368 billion deal that could see Australia buy at least three Virginia-class nuclear-attack submarines from the US by the 2030s. The MPs said there has been insufficient parliamentary oversight of the pact and said Australians wanted to know more about its strategic and financial implications. "With the UK and now the US reviewing AUKUS, Australia is now the only country not actively considering whether the agreement in its current form best serves our national interest," Senator Pocok said in a statement. "Given the scale and cost of this deal, a transparent review is not just sensible; it's overdue." Australia is investing billions of dollars to support the US's submarine production base under AUKUS, which is estimated to be 20 years behind schedule. Independent MP Allegra Spender said there needed to be an open discussion about the "very clear risk" that the US will not be able to guarantee the transfer of the boats without diminishing its naval capabilities. "AUKUS is the centrepiece of our defence and foreign policy strategy, but it's been adopted by the major parties with very poor public engagement," Ms Spender said. "AUKUS will shape Australia's future for decades with enormous implications both financially, economically, and strategically, but in discussions at the community level, there are consistent questions and concerns that have not been addressed." Defence Minister Richard Marles has said he remains confident the deal will go ahead and that the US review was a "perfectly natural" thing for a new administration to do. "We've always known that increasing the production and sustainment rate in the United States is a challenge, but we're confident that we can meet that challenge," Mr Marles said on Friday. The Canberra Times has contacted a spokesperson for comment. A parliamentary inquiry into the ratification of the AUKUS treaty last year heard that a provision allowing the US and the UK to withdraw with a year's notice could have "significant implications" for Australia. The inquiry heard there were no specified terms in the treaty or in agreement documents to suggest Australia would have full ownership of the second-hand US-built boats, which are due to be sold and delivered by 2032. Opposition defence spokesman Angus Taylor said he was concerned about the future of AUKUS and called on Prime Minister Anthony Albanese to meet with Donald Trump to secure its terms. "We'll continue to make the case for AUKUS, and we must. It is a good arrangement and the right arrangement to ensure we get peace in our region through deterrence," Mr Taylor said on Friday. Mr Albanese is expected to hold his first in-person meeting with the US president on the sidelines of the G7 summit in Canada next week, which has yet to be confirmed. The potential meeting comes after Labor rebuffed US Defence Secretary Peter Hegseth's call for Australia to increase its military spending to 3.5 per cent of GDP from the current level of just over 2 per cent. ACT senator David Pocock and an alliance of parliamentary crossbenchers are calling on the Albanese government to urgently establish a formal inquiry into the AUKUS submarine deal. It comes after revelations the Trump administration will review the terms of the trilateral pact to ensure it meets "American First criteria", which has sparked doubts about the future of the landmark deal. Eight crossbench MPs wrote to Defence Minister Richard Marles on Friday, raising concerns about the $368 billion deal that could see Australia buy at least three Virginia-class nuclear-attack submarines from the US by the 2030s. The MPs said there has been insufficient parliamentary oversight of the pact and said Australians wanted to know more about its strategic and financial implications. "With the UK and now the US reviewing AUKUS, Australia is now the only country not actively considering whether the agreement in its current form best serves our national interest," Senator Pocok said in a statement. "Given the scale and cost of this deal, a transparent review is not just sensible; it's overdue." Australia is investing billions of dollars to support the US's submarine production base under AUKUS, which is estimated to be 20 years behind schedule. Independent MP Allegra Spender said there needed to be an open discussion about the "very clear risk" that the US will not be able to guarantee the transfer of the boats without diminishing its naval capabilities. "AUKUS is the centrepiece of our defence and foreign policy strategy, but it's been adopted by the major parties with very poor public engagement," Ms Spender said. "AUKUS will shape Australia's future for decades with enormous implications both financially, economically, and strategically, but in discussions at the community level, there are consistent questions and concerns that have not been addressed." Defence Minister Richard Marles has said he remains confident the deal will go ahead and that the US review was a "perfectly natural" thing for a new administration to do. "We've always known that increasing the production and sustainment rate in the United States is a challenge, but we're confident that we can meet that challenge," Mr Marles said on Friday. The Canberra Times has contacted a spokesperson for comment. A parliamentary inquiry into the ratification of the AUKUS treaty last year heard that a provision allowing the US and the UK to withdraw with a year's notice could have "significant implications" for Australia. The inquiry heard there were no specified terms in the treaty or in agreement documents to suggest Australia would have full ownership of the second-hand US-built boats, which are due to be sold and delivered by 2032. Opposition defence spokesman Angus Taylor said he was concerned about the future of AUKUS and called on Prime Minister Anthony Albanese to meet with Donald Trump to secure its terms. "We'll continue to make the case for AUKUS, and we must. It is a good arrangement and the right arrangement to ensure we get peace in our region through deterrence," Mr Taylor said on Friday. Mr Albanese is expected to hold his first in-person meeting with the US president on the sidelines of the G7 summit in Canada next week, which has yet to be confirmed. The potential meeting comes after Labor rebuffed US Defence Secretary Peter Hegseth's call for Australia to increase its military spending to 3.5 per cent of GDP from the current level of just over 2 per cent. ACT senator David Pocock and an alliance of parliamentary crossbenchers are calling on the Albanese government to urgently establish a formal inquiry into the AUKUS submarine deal. It comes after revelations the Trump administration will review the terms of the trilateral pact to ensure it meets "American First criteria", which has sparked doubts about the future of the landmark deal. Eight crossbench MPs wrote to Defence Minister Richard Marles on Friday, raising concerns about the $368 billion deal that could see Australia buy at least three Virginia-class nuclear-attack submarines from the US by the 2030s. The MPs said there has been insufficient parliamentary oversight of the pact and said Australians wanted to know more about its strategic and financial implications. "With the UK and now the US reviewing AUKUS, Australia is now the only country not actively considering whether the agreement in its current form best serves our national interest," Senator Pocok said in a statement. "Given the scale and cost of this deal, a transparent review is not just sensible; it's overdue." Australia is investing billions of dollars to support the US's submarine production base under AUKUS, which is estimated to be 20 years behind schedule. Independent MP Allegra Spender said there needed to be an open discussion about the "very clear risk" that the US will not be able to guarantee the transfer of the boats without diminishing its naval capabilities. 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A parliamentary inquiry into the ratification of the AUKUS treaty last year heard that a provision allowing the US and the UK to withdraw with a year's notice could have "significant implications" for Australia. The inquiry heard there were no specified terms in the treaty or in agreement documents to suggest Australia would have full ownership of the second-hand US-built boats, which are due to be sold and delivered by 2032. Opposition defence spokesman Angus Taylor said he was concerned about the future of AUKUS and called on Prime Minister Anthony Albanese to meet with Donald Trump to secure its terms. "We'll continue to make the case for AUKUS, and we must. It is a good arrangement and the right arrangement to ensure we get peace in our region through deterrence," Mr Taylor said on Friday. Mr Albanese is expected to hold his first in-person meeting with the US president on the sidelines of the G7 summit in Canada next week, which has yet to be confirmed. 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The Advertiser
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Woodside given more time to consider gas plant rules
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"Australians who are worried about the protection of the ancient Murujuga rock art, which has been nominated for World Heritage listing and is right next door to Woodside's gas hub, deserve to see what Woodside is being allowed to negotiate behind closed doors," Ms Rollins said. "In addition to the damage to the rock art, extending the NW Shelf gas hub until 2070 locks in decades more climate pollution and will drive demand to open new gas fields." A final call on Woodside's massive gas project has been delayed with the energy giant granted more time to consider federal conditions on cultural heritage and air quality. Woodside had 10 days to respond to Environment Minister Murray Watt's provisional approval to push out the life of its North West Shelf project in Western Australia but an unspecified extension has since been granted. Under the proposal, the project - which hosts Australia's biggest gas export plant - will be able to keep operating until 2070. The tentative approval has angered Indigenous groups fearful it will damage nearby ancient rock art, as well as environmentalists concerned it will hasten climate change. Protesters took the campaign to the offices of five federal Labor MPs in Perth on Friday where they handed over an open letter opposing the project signed by more than 60 scientists and experts. The North West Shelf's go-ahead is subject to strict conditions about the impact of air emission levels, provisions the environment minister says will ensure the 60,000-year-old Murujuga Indigenous rock art is not destroyed. Senator Watt said discussions with Woodside had been constructive and it was not uncommon for proponents in this situation to take a bit longer to respond. "I can't predict exactly when it will be that Woodside will provide those comments," he told ABC radio on Thursday. The energy giant confirmed the extended consultation period on Friday. "Woodside recognises the importance of the matters being addressed by the proposed conditions of the environmental approval including cultural heritage management and air quality," the company said in a statement. Australian Conservation Foundation climate campaigner Piper Rollins said the public had a right to see the conditions proposed by the minister. "Australians who are worried about the protection of the ancient Murujuga rock art, which has been nominated for World Heritage listing and is right next door to Woodside's gas hub, deserve to see what Woodside is being allowed to negotiate behind closed doors," Ms Rollins said. "In addition to the damage to the rock art, extending the NW Shelf gas hub until 2070 locks in decades more climate pollution and will drive demand to open new gas fields." A final call on Woodside's massive gas project has been delayed with the energy giant granted more time to consider federal conditions on cultural heritage and air quality. Woodside had 10 days to respond to Environment Minister Murray Watt's provisional approval to push out the life of its North West Shelf project in Western Australia but an unspecified extension has since been granted. Under the proposal, the project - which hosts Australia's biggest gas export plant - will be able to keep operating until 2070. The tentative approval has angered Indigenous groups fearful it will damage nearby ancient rock art, as well as environmentalists concerned it will hasten climate change. Protesters took the campaign to the offices of five federal Labor MPs in Perth on Friday where they handed over an open letter opposing the project signed by more than 60 scientists and experts. The North West Shelf's go-ahead is subject to strict conditions about the impact of air emission levels, provisions the environment minister says will ensure the 60,000-year-old Murujuga Indigenous rock art is not destroyed. Senator Watt said discussions with Woodside had been constructive and it was not uncommon for proponents in this situation to take a bit longer to respond. "I can't predict exactly when it will be that Woodside will provide those comments," he told ABC radio on Thursday. The energy giant confirmed the extended consultation period on Friday. "Woodside recognises the importance of the matters being addressed by the proposed conditions of the environmental approval including cultural heritage management and air quality," the company said in a statement. Australian Conservation Foundation climate campaigner Piper Rollins said the public had a right to see the conditions proposed by the minister. "Australians who are worried about the protection of the ancient Murujuga rock art, which has been nominated for World Heritage listing and is right next door to Woodside's gas hub, deserve to see what Woodside is being allowed to negotiate behind closed doors," Ms Rollins said. "In addition to the damage to the rock art, extending the NW Shelf gas hub until 2070 locks in decades more climate pollution and will drive demand to open new gas fields." A final call on Woodside's massive gas project has been delayed with the energy giant granted more time to consider federal conditions on cultural heritage and air quality. Woodside had 10 days to respond to Environment Minister Murray Watt's provisional approval to push out the life of its North West Shelf project in Western Australia but an unspecified extension has since been granted. Under the proposal, the project - which hosts Australia's biggest gas export plant - will be able to keep operating until 2070. The tentative approval has angered Indigenous groups fearful it will damage nearby ancient rock art, as well as environmentalists concerned it will hasten climate change. 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Australian Conservation Foundation climate campaigner Piper Rollins said the public had a right to see the conditions proposed by the minister. "Australians who are worried about the protection of the ancient Murujuga rock art, which has been nominated for World Heritage listing and is right next door to Woodside's gas hub, deserve to see what Woodside is being allowed to negotiate behind closed doors," Ms Rollins said. "In addition to the damage to the rock art, extending the NW Shelf gas hub until 2070 locks in decades more climate pollution and will drive demand to open new gas fields."
The Advertiser
37 minutes ago
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New Middle East conflict sends jitters through market
Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. 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Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents Australia's share market has lost much of the week's gains, after Israel's attack on Iran proved a brutal reality check for risk sentiment. The S&P/ASX200 fell 17.7 points, or 0.21 per cent, to 8,547.4, as the broader All Ordinaries gave up 25.4 points, or 0.29 per cent, to 8,770.6. Wednesday's dual-record intraday peak and best-ever close for the top-200 became a distant memory as Israeli air strikes on Iranian military targets and nuclear facilities prompted retaliatory drone attacks. The escalating conflict also weighed on markets in Asia, as Hong Kong's Hang Seng index, Japan's Nikkei and South Korea's KOSPI all fell between 0.8 per cent and one per cent. Eight of 11 local sectors lost ground on Friday, while energy and utilities stocks surged after oil prices spiked to four-month highs in the wake of the attacks. Brent Crude futures had since eased, but were trading at $US72.40 a barrel at 5pm. The elevation of global risk came at an inopportune time for the ASX and its financial sector, both of which hit new highs this week and showed signs of being overbought, IG Markets analyst Tony Sycamore said. "You wouldn't want to be going home long on risk (assets) ahead of this weekend, because there's just so much uncertainty out there," he told AAP. Meanwhile, the oil price spike could stoke inflation, just as central banks were easing monetary policy after finally tempering post-pandemic price growth. "In the worst-case scenario, then potentially we see crude oil spike up towards $US100 (a barrel) and that takes inflation significantly higher," Mr Sycamore said. "That reduces the ability of central banks around the world to ease interest rates, because they're then fighting another re-acceleration in inflation." Energy stocks and utilities both surged more than four per cent, and the defensive consumer discretionary sector was the only other division in the green, up 0.25 per cent. The spike in crude prices was good news for Woodside investors, as the oil and gas giant rallied more than seven per cent to $25.21, the top-200's best performer. Financial stocks, which account for roughly half of the top-200's value, fell 0.4 per cent as three of the big four banks - excepting a flat Westpac - grinded lower. The sector is roughly flat for the week. Materials stocks fell 0.2 per cent, as rallying gold miners helped soften a sell-off in large cap miners BHP (-2.6 per cent) and Rio Tinto (-1.1 per cent), tracking with an uplift in gold and continued weakness in iron ore prices. Gold itself rose to its highest level since the beginning of May to trade at $US3,445 ($A5,320) an ounce, spiking to within roughly one per cent of its $US3,500 all-time high. Australia's tech sector took the biggest hit on Friday, down 1.2 per cent as investors fled to safety. The Australian dollar is buying 64.76 US cents, down from 64.96 US cents on Thursday at 5pm. Next week, four major central banks will set their policy rates, and while investors expect no changes, they will be looking for any pivots towards dovish rhetoric in light of escalating conflict in the Middle East. "Not rate cuts, but setting up the idea that things have now become more uncertain and there is now more risk to global growth because of what happened this morning," Mr Sycamore said. ON THE ASX: * The benchmark S&P/ASX200 index finished Friday 17.7 points lower, or down 0.21 per cent, to 8,547.4 * The broader All Ordinaries lost 25.4 points, or 0.29 per cent, to 8,770.6 CURRENCY SNAPSHOT: One Australian dollar buys: * 64.76 US cents, from 64.96 US cents on Thursday at 5pm * 92.99 Japanese yen, from 93.39 Japanese yen * 56.10 Euro cents, from 56.39 Euro cents * 47.83 British pence, from 47.89 pence * 107.67 NZ cents, from 107.80 NZ cents
