The S&P/ASX 200 Index (ASX: XJO) is having another difficult session on Wednesday as investors respond to a weaker lead from global markets.
At the time of writing, the benchmark index is down 0.69% to 8,743 points.
The session looked much worse earlier on. The ASX 200 fell as low as 8,676.7 points this morning before trimming some of those losses.
Still, the decline has been enough to push the index back near its lowest levels in weeks.
Here's what is dragging on the market today.
Image source: Getty Images
Oil is back in focus
Crude prices have been pushed higher after renewed tensions around the Strait of Hormuz.
Fresh attacks on commercial vessels, along with another round of US military strikes against Iran, have put supply risk back in the spotlight.
According to Trading Economics, WTI crude is trading at around US$72.32 a barrel, up 2.66%, while Brent crude is near US$76.05 a barrel, up 2.55%.
That has helped support energy shares, even as the broader market loses ground.
Santos Ltd (ASX: STO) shares are up 4.8% to $7.43, while Woodside Energy Group Ltd (ASX: WDS) shares are 2.79% higher to $28.75.
Origin Energy Ltd (ASX: ORG) shares are also up 1.63% to $10.315.
Miners and tech drag on the index
The problem for the ASX 200 is that the gains in energy are being offset elsewhere.
BHP Group Ltd (ASX: BHP) shares are down 3.3% to $56.925, while Rio Tinto Ltd (ASX: RIO) shares are 2.35% lower to $164.19.
Fortescue Ltd (ASX: FMG) shares are also weaker, falling 0.93% to $18.21.
The selling has also spread beyond resources.
Macquarie Group Ltd (ASX: MQG) shares are down 1.63% to $249.22, Goodman Group (ASX: GMG) shares have dropped 2.43% to $29.935, and Telstra Group Ltd (ASX: TLS) shares are off 2.47% to $4.945 following the recent outage.
Overall, 128 ASX 200 shares are falling, 62 are rising, and 10 are unchanged.
Banks and defensives soften the fall
The ASX 200 is still lower, but support from the banks and defensives is helping limit the damage.
Commonwealth Bank of Australia (ASX: CBA) shares are down 0.41% to $166.01, although the rest of the major banks are holding up a little better.
Westpac Banking Corp (ASX: WBC) shares are 0.25% lower at $36.04, National Australia Bank Ltd (ASX: NAB) is flat at $39.22, and ANZ Group Holdings Ltd (ASX: ANZ) has edged 0.31% higher to $35.55.
The supermarkets are also giving the market some support.
Woolworths Group Ltd (ASX: WOW) shares are up 0.79% to $39.73, while Coles Group Ltd (ASX: COL) has added 0.43% to $23.42.
QBE Insurance Group Ltd (ASX: QBE) is also in positive territory, climbing 0.96% to $25.23 on the back of a leadership update.
