The local market slid by 0.2% today as investors juggled a hawkish Reserve Bank and a dangerous escalation in the Middle East. Overnight, oil prices jumped 5% following missile exchanges in the Strait of Hormuz, including reports of Iranian strikes on a UAE port and the US sinking Iranian boats. This "oil shock" pushed the RBA to raise interest rates to 4.35%—a third consecutive hike that effectively undoes all of 2025’s rate cuts. Westpac fell 2.3% after missing half-year profit expectations, while Flight Centre defied the gloom, surging 4% despite a $10 million hit from war-related disruptions. Energy stocks rose 1% as crude prices climbed.

Steve Daghlian and Laura Besarati are Market Analysts at CommSec. Each episode, they break down the day's market movements and explain what the numbers really mean.

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