Markets spooked after Israel launches retaliatory strike on Iran

Australian stocks fell to a three-month low while gold and oil surged after Israel reportedly launched a retaliatory strike on Iran less than a week after Tehran’s rocket and drone swarm, fuelling fears of a widening Middle East war.

Iran’s air defences shot at a suspected small number of drones and several explosions were reported near a military base and nuclear site near the central city of Isfahan. Another group of drones was reportedly shot down near Tabriz, 800 kilometres further north.