S&P/ASX 200 Index (ASX: XJO) shares are 0.4% lower on Thursday after an explosion and fire at the Geelong oil refinery.
Australia has just two oil refineries, both of which have been running full tilt since the Iran war began.
The conflict between the US, Israel, and Iran has created a significant energy shock, with oil and gas prices soaring.
This has sparked fears of higher inflation and further increases in interest rates in Australia.
Meanwhile, some ASX 200 shares have attracted upgrades from the experts this week.
Let's take a look.
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Whitehaven Coal Ltd (ASX: WHC)
The Whitehaven share price is $8.42, down 0.9% today.
Over the past month, this ASX 200 coal share has fallen 9%.
Morgan Stanley upgraded Whitehaven shares to a buy rating today.
But the broker shaved its 12-month price target from $9.80 to $9.75.
Evolution Mining Ltd (ASX: EVN)
The Evolution share price is $13.89, down 3.9%.
Over the past month, the ASX 200 gold mining share has lifted 6%.
Morgans upgraded Evolution shares from hold to accumulate yesterday.
However, the broker reduced its 12-month target from $17.16 to $16.10.
Morgans said:
We upgrade to an ACCUMULATE (from HOLD) following recent weakness across the gold sector which we believe has uncovered value in a high-quality name, despite a strong share price reaction post the result.
The gold price fell 21% during the first three weeks of the Iran war.
The A2 Milk Company Ltd (ASX: A2M)
The A2 Milk share price is $7.56, down 2%.
Over the past month, the ASX 200 consumer staples share has tumbled 20%.
Morgans upgraded A2 Milk shares from a hold rating to accumulate on Monday.
However, the broker lowered its share price target from $9.50 to $8.70.
This followed a trading update from A2 Milk.
Morgans said:
A2M's FY26 earnings downgrade was due to factors largely out of its own control, being higher freight/supply chain costs associated with the conflict in the Middle East and delays getting product released (enhanced testing and customs clearance) following peer recalls.
Importantly, the demand for its products is strong.
Guidance has been revised due to supply constraints (lower sales and product mix issues dilute margins) and higher costs.
In our view, while some of the issues are one-off in nature, increased costs associated with the conflict are likely to continue into FY27.
Despite this, we still expect strong growth in FY27 given A2 Pokeno is expected to break even and new China label (CL) IF products will be launched.
Ingenia Communities Group (ASX: INA)
The Ingenia Communities share price is $4.11, up 1.1%.
Over the past month, the ASX 200 property share has eased 0.4%.
UBS upgraded Ingenia shares to a buy rating today.
The broker has a 12-month price target of $4.60.
