On Friday, Australian shares experienced a 1.5% drop, erasing gains from the previous two sessions, as renewed hostilities between the United States and Iran unsettled investors. The S&P/ASX 200 index closed at 8,744.40, although it managed to rise 0.2% for the week overall, remaining below record highs from March. David Tuckwell, chief investment officer at ETF Shares, noted that escalating tensions have diminished hopes for a diplomatic resolution, prompting a shift towards safer investments. Mining stocks fell 1%, with major players BHP and Rio Tinto declining by 1% and 0.8%, respectively. Banks also faced pressure, with losses ranging from 1.5% to 2.9% among the Big Four banks, particularly Westpac, which lagged after trading ex-dividend. Energy stocks dropped 1.6%, while Tabcorp plunged 14.2% due to ongoing investigations into money-laundering risks. In New Zealand, the S&P/NZX 50 index fell 0.7%, although it recorded a 1% gain for the week.