Company Interview / the open: ASX set to plunge 📉 Oil extends rally

It was a savage session on global equity markets overnight as oil prices surged on supply fears amid an intensifying conflict in the Middle East. The US and Israeli bombing campaign continued against Iran while more tankers came under attack in Gulf waters. The local market is set to plunge at the opening with ASX futures off by 1.4%. 

The inflationary impact of rising oil prices fueled the sell-off on Wall Street. The losses were most pronounced on the rate-sensitive Russell 2000 small cap index. Meanwhile, there was broad based selling on the Dow, among industrials as well as the healthcare, consumer staples and materials sectors.

 More tankers have come under attack in Gulf waters and Iranian drones entered Azerbaijan to its north, prompting concern that war could drag in other oil-producing states. Meanwhile, President Trump has claimed the right to decide Iran's next leader. 

Oil prices have extended a rally as the escalating Middle East war disrupted supplies and shipping, driving some major producers to cut output. Brent crude rose around 5% to $85.41 a barrel. 

The US dollar index is up 0.5% on the day. The Australian dollar has fallen below 70 US cents.