Middle East war wipes $120b from local share market

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The Australian share market posted its worst trading week in almost a year. -AAP Image

The Trump administration's efforts to topple the Iranian regime have liberated local investors from their money, wiping more than $120 billion from Australia's bourse in a week.

The S&P/ASX200 fell 89.3 points on Friday, down one per cent, to 8,851, as the broader All Ordinaries lost 79.8 points, or 0.87 per cent, to 9,085.1.

It was the top-200's worst weekly performance since early April 2025, when US president Donald Trump's Liberation Day tariff announcements roiled global markets.

The losses erased roughly (3.9 per cent) from the top-500's $3.2 trillion combined market cap since the start of the week, as escalating conflict in the Middle East lit a match under oil prices, sparking fears of inflation and weaker global growth.

The Australian dollar is buying 70.28 US cents, down from 70.41 US cents on Thursday at 5pm.