Live: ASX likely to tumble, oil hits two-month high amid US-Iran strikes

The Australian share market is expected to experience a significant decline following the US military's recent strikes against Iran, which have driven oil prices to a two-month high. This has led to a global bond sell-off and substantial losses on Wall Street due to concerns over inflation. The latest developments signify a major escalation in the six-month-long conflict between the US and Iran.

The US military has conducted new attacks on Iran, targeting cities along the Strait of Hormuz. The Islamic Revolutionary Guard Corps (IRGC) has warned the US of severe consequences, and retaliated by launching attacks on Jordan with ballistic missiles. Jordan's military has intercepted ten out of thirteen ballistic missiles that entered its airspace.

Consequently, oil prices have surged, explaining the anticipated poor performance of the Australian share market. In response to these events, the US dollar has strengthened as the likelihood of a September interest rate hike has increased. Consequently, gold prices have dropped by 2.7%, reaching $US4,329 per ounce. On Wall Street, major indices such as the Dow Jones, S&P 500, and Nasdaq Composite have all experienced declines.

Similarly, European indices like the FTSE, DAX, and Stoxx 600 have also experienced losses. The initial impact of the US-Iran conflict on the Australian share market is evident as futures contracts have dropped by 0.9%.