Australia’s mining sector has reversed its long-standing dominance on the ASX, falling from the best-performing group over the past year to the worst in the last 30 days.
The sharp reversal reflects a confluence of profit-taking, renewed geopolitical anxiety in the Middle East, and a broader market rotation away from commodities and toward artificial intelligence equities.
The materials sector has come under sustained pressure as investors reassess risk amid escalating tensions involving Iran.
Australian equity futures recently erased early gains after US President Donald Trump threatened military action against Iran, coinciding with Tehran’s announcement that it was closing the Strait of Hormuz.
The threat to this critical energy chokepoint has heightened uncertainty for global supply chains, weighing heavily on commodity-linked equities.
At the same time, capital is flowing out of traditional resource plays and into technology stocks driven by AI optimism.