Australian shares slumped on Friday as heavyweight miners offset a rally in oil producers buoyed by a renewed crude spike that stoked fears the war in Iran will further crimp energy supplies.

The S&P/ASX 200 Index lost 26.90 points or 0.3 per cent to 8602.10 at 10.10am AEDT, with heavy losses by materials offset gains in seven of the 11 sectors.

For the week, the benchmark is on track to decline 2.8 per cent, extending a 3.8 per cent decline in the previous week.

Materials spearheaded losses as BHP fell 2.3 per cent to be 16 per cent off its record high set two weeks ago. Fortescue rose 1.1 per cent as iron ore shipments from competitors bound for the Middle East were diverted away from the conflict zone.

The sector was weighed down by a 15.9 per cent decline in Northern Star. Losses in the gold miner were driven by a warning that hitting the bottom end of its 2025-26 production guidance would be challenging, citing weaker milling at the Kalgoorlie Super Pit and reduced output at Jundee.

Syrah Resources tanked 22.9 per cent after the US International Trade Commission rejected tariffs on Chinese graphite anode materials, with managing director Shaun Verner saying the company was “disappointed” but remains committed to ramping up its Vidalia facility in Louisiana.

Energy continued to be the strongest sector on the ASX amid the Iran war as Brent closed above $US100 a barrel and US WTI opened up by 2 per cent. Woodside Energy gained 1.4 per cent, Santos 1.3 per cent and Ampol by 1.9 per cent.

Commonwealth Bank rose 1.1 per cent as it paced gains by the major banks, helping financials to limit the impact by heavyweight miners.