The S&P/ASX 200 index edged lower on Tuesday, falling 0.2% to 8,787.10 by 0006 GMT.
The decline marks a continuation of recent weakness, following a session on Monday where the index dropped 0.1% to 8,801 points, extending a losing streak that has now spanned four consecutive trading days.
Sector performance was sharply divided by the ongoing geopolitical anxiety in the Middle East.
Energy stocks posted gains as investors priced in supply disruption risks, but these advances were insufficient to offset broader market pressure.
Losses in the mining and banking sectors dragged the index down, reflecting a risk-off sentiment that outweighed the commodity-specific tailwinds for energy names.
The market's reaction underscores the persistent impact of Middle East conflict on global asset allocation.