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Australian shares fall on inflation fears, Northern Star falls on output warning

Australian shares dropped on Friday, as rising oil prices tied to the Middle East conflict fueled inflation fears. Meanwhile, gold miner Northern Star fell after announcing difficulties in achieving its annual production forecast.

By 2333 GMT, the?S&P/ASX 200 was?down _0.3%? at 8,611.20. The benchmark index has lost 6.5% in the last two weeks, since the Middle East War began.

The oil price rose on Thursday, reaching its highest level in almost four years. This was due to Iran's increased attacks on oil and transportation facilities throughout the Middle East.

Markets projected a 78% probability of an increase at the Reserve Bank of Australia meeting on 17 March, up from 20%.

Northern Star Resources plummeted as much as 16.6%. It is on course for its worst session since late March 2020 after the company announced operational setbacks in one of Australia's biggest open-pit gold mining operations, Kalgoorlie Consolidated Mines.

Lower gold prices weighed down on the Australian gold peers as well as the broader mining index, which both fell by 4.3% and 1.8% respectively. The dollar strengthened and bets that the U.S. Fed would cut rates eased.

The conflict and Northern Star's fall wiped out gold sub-index gains for the year, after it had more than doubled on a bullion price rally in 2025.

Financials increased 0.5%, which helped limit the overall loss, but if momentum continues, it is likely that a third straight week of?loss will follow.

All four "Big Four' lenders gained between 0.3% to 0.7%.

Energy stocks rose by 1.1% due to higher oil prices. Karoon Energy, however, lost?1.8% when it announced that Brazil had imposed a 12 percent tax on oil exports. Karoon has a Brazilian asset, the Bauna Project.

The benchmark S&P/NZX50 index in New Zealand fell 0.5% to 13,133.31.

(source: Reuters)