The S&P/ASX 200 Index (ASX: XJO) is heading lower on Tuesday, with the market dropping back below 9,000 points.
At the time of writing, the benchmark index is down 0.68% to 8,949 points.
That puts the ASX 200 at its lowest level in 3 sessions and wipes out Monday's small gain, when the index closed at 9,010 points.
The selling is also fairly widespread. Around 115 ASX 200 shares are falling, compared with 70 trading higher and 15 unchanged.
So, what is weighing on the market today?
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Oil is back near US$100
Oil prices are getting plenty of attention after another skirmish in the Middle East conflict.
Brent crude settled at US$97.31 a barrel on Monday after reaching US$98.06, its highest level since late July. It is trading around US$96.80 this morning.
The move followed another escalation between the US and Iran, including attacks involving oil tankers and warships around the Strait of Hormuz.
That's keeping concerns around energy prices, inflation, and interest rates in focus.
There was also little direction from Wall Street overnight, with the US stock market closed for the Labor Day public holiday.
Heavyweights are pulling the index lower
Several of the ASX 200's largest companies are trading lower this morning.
Commonwealth Bank of Australia (ASX: CBA) shares are down 0.64% to $160.51, while ANZ Group Holdings Ltd (ASX: ANZ) shares have fallen 0.61% to $37.70.
CSL Ltd (ASX: CSL) shares are down 0.81% to $171.79, and Wesfarmers Ltd (ASX: WES) has slipped 0.40% to $76.99.
REA Group Ltd (ASX: REA) is also among the weaker large-cap shares, falling 1.22% to $161.17.
Resources are holding up better
The resources sector is providing some support, helped by higher commodity prices.
BHP Group Ltd (ASX: BHP) shares are almost flat at $62.94, while copper prices have climbed to record levels in London trading.
Gold miners are also doing better. Northern Star Resources Ltd (ASX: NST) shares are up 0.77% to $23.47, while Evolution Mining Ltd (ASX: EVN) shares are 0.27% higher at $14.94.
Santos Ltd (ASX: STO) shares are up 0.36% to $8.38 as energy stocks benefit from higher oil prices.
Foolish takeaway
What I find more interesting is how quickly the ASX 200 has lost momentum over the past month.
The index was trading above 9,250 points in mid-August, but has now fallen by more than 3% from those levels.
Yes, that's still only a modest pullback. But with oil prices rising and interest rate concerns hanging around, investors may need to get used to a bit more volatility.
