Australian shares have resumed their journey lower, as inflation concerns fuelled by the Middle East energy crisis underpin a global bond sell-off and weigh on investor confidence.
The S&P/ASX200 fell 71.6 points by midday, down 0.83 per cent to 8,533, as the broader All Ordinaries lost 71.6 points, or 0.81 per cent to 8,757.9.
Local equities renewed their slump following Tuesday's bounce after US President Donald Trump walked back threats of fresh attacks on Iran.
But worries around the conflict's impact on global inflation hit Wall Street overnight, sending long-dated treasury bonds to their highest levels since 2007.
"Frankly, we're not overly convinced about the near-term prospects of a peace deal and suspect the motivation to hold fire stemmed from the weekend's fresh drone attacks on the UAE and Saudi Arabia," IG market analyst Tony Sycamore said.
