The local share market has slumped to its lowest level since January as prospects of a broader Middle East conflict spooked investors.
The benchmark S&P/ASX200 index on Friday finished down 74.8 points, or 0.98 per cent, to 7,567.3, a weekly loss of 2.8 per cent.
The broader All Ordinaries was down 8.15 points, or 1.03 per cent, to 7,817.4.
Reports of Israeli missile strikes on Iran rattled investor confidence and put the share market on track for a correction, AMP chief economist Shane Oliver said.
Bonds as well as oil and gold prices soared as investors fled already overbought equities in search of a safe haven.
The Australian dollar was buying 63.96 US cents, from 64.47 US cents at Thursday's ASX close.