-- Australian shares were modestly higher at Monday's close as oil prices spiked and investors weighed the rising tensions between the US and Iran.
The S&P/ASX 200 Index increased slightly by 6.4 points to close at 8,953.30.
Tensions rose in the Middle East as the US seized an Iranian cargo ship and Iran's top military command said they would retaliate. The ceasefire between the two countries is set to expire on Tuesday.
US President Donald Trump said he was sending envoys for talks in Pakistan and that he would launch new strikes on Iran if it didn't agree to his terms. However, Iran rejected new peace talks with the US, its state news agency reported.
Brent crude oil futures were up by 5.7% to $95.50 per barrel.
On the domestic front, ANZ said it expects Australia's underlying cash deficit to be little changed from the Mid-Year Economic and Fiscal Outlook at AU$37 billion in fiscal 2025 to 2026 and AU$36 billion in fiscal 2026 to 2027, with deficits averaging about 1% of gross domestic product likely over the forward estimates through to fiscal 2029 to 2030.
Australian households' fuel spend dropped 3.8% to AU$163.4 million in the week that started April 6, following a nearly 18% decline to AU$169.8 million in the week before.
In company news, National Australia Bank (ASX:NAB) said it expects fiscal first-half credit impairment charges of AU$706 million as it lifts provisions to reflect risks stemming from the Middle East conflict. The AU$300 million net increase in forward-looking collective provisions includes a AU$201 million increase in forward-looking adjustments for potential stress in sectors that are more likely to see an impact from fuel supply and cost issues.
Viva Energy Group (ASX:VEA) reported a 5.1% year-over-year increase in first-quarter sales volume to 4,302 megaliters, driven by an increase of 7.1% in commercial and industrial fuel volume. The company said its Geelong refinery does not typically source Middle Eastern crude.
Lastly, Worley (ASX:WOR) said the adverse impact of the Middle East conflict on its fiscal 2026 underlying earnings before interest, tax, and amortization is estimated to range from AU$30 million to AU$40 million.