ASX200 sinks as Middle East war fears trigger sharp selloff in Australian share market

The Australian share market took a sharp turn this week as the ASX200 index slid sharply on March 3-4, 2026, driven by growing Middle East war fears and rising global risk aversion. Markets reacted nervously to escalating conflict in the Gulf, with oil prices spiking and investors shifting out of riskier assets. On Tuesday, the S&P/ASX 200 dipped more than 1.3 per cent, marking its weakest session in over two weeks as broad sell‑offs hit nearly every sector.