Australian shares retreated on Thursday's close, as Brent crude oil futures jumped above $110 per barrel.
The S&P/ASX 200 Index fell by 1.65%, or 142.80 points, at 8,497.80.
Iran attacked several energy facilities across the Middle East, following a strike on its South Pars gas field. Qatar's QatarEnergy said the Ras Laffan Industrial City had suffered "extensive damage."
Meanwhile, gold retreated to around $4,830 per ounce after the US Federal Reserve's policy decision on Wednesday to hold rates steady, with expectations for interest rates to remain higher for longer amid the ongoing Middle East conflict.
On the domestic front, Australia's seasonally adjusted unemployment rate rose to 4.3% in February, up from 4.1% in the previous month, data from the Australian Bureau of Statistics showed. The consensus forecast was for 4.1%, according to Trading Economics.
Australia's job ads fell 0.5% month over month in January for the third consecutive month and on a trend-adjusted basis, marking the seventh month of small but consistent decline, with the annual decline now at 2.6%, online employment marketplace Seek said.
In company news, the Australian Competition and Consumer Commission (ACCC) launched an investigation into allegations of anti-competitive behavior by major fuel suppliers, including Ampol (ASX:ALD) and Viva Energy Group (ASX:VEA) subsidiary Viva Energy Australia, in regional and rural Australia. Viva's shares jumped 14% on market close, while those of Ampol closed up 4%.
Boss Energy (ASX:BOE) said the mineral resource estimate for the Gould's Dam deposit in South Australia totaled 38.7 million tonnes at 388 parts per million triuranium octoxide for 33.1 million pounds of contained metal, with 23% classified as indicated and 77% as inferred. Its shares fell 6% on market close.
Lastly, Lynas Rare Earths (ASX:LYC) completed its first production of samarium oxide at Lynas Malaysia, expanding its separated heavy rare earth (HRE) oxide offerings to three products, alongside dysprosium and terbium. Its shares closed down 2%.