Global oil stockpiles are being drawn down at a record pace, with the International Energy Agency estimating inventories have fallen by 507 million barrels since the conflict began. Disruptions have escalated as Ukrainian attacks have severely damaged Russia’s refining sector, which typically accounts for 4 per cent of global capacity, while China is preparing to lift crude imports. In Australia, average petrol prices have jumped nearly 40 per cent since July to above $2.30 a litre and diesel has risen nearly 60 per cent to $2.88, heightening concern about further increases.

Saudi Arabia’s East-West oil pipeline was shut after a drone attack, disrupting about 4 million barrels a day of crude transport, or 4% of global supply. Australian fuel prices jumped in response, with the national average for regular unleaded rising to A$2.37 a litre, up 39% since July. Diesel climbed 59% over the same period to A$2.88 a litre.

Escalating tensions in the Middle East have pushed international oil prices toward $US100 a barrel. Despite a continued US military presence in the Persian Gulf, crude shipments through the Strait of Hormuz have fallen to about one-third of prewar levels. Iran-aligned Houthis have attacked Saudi refining facilities and are threatening pipelines carrying about 5 million barrels a day, raising the risk of another round of energy-driven inflation and broader economic strain.

Australia’s tax office has ruled that revenue from cloud computing and streaming services should be treated as royalties and taxed at a higher rate, a move that could sharpen trade tensions with the United States. Australia has already imposed a 2.5% levy on advertising revenue earned by major technology companies. Netflix also faces a $1 billion fine if it fails to meet local content quotas. The decision follows five years of consultation and marks a new front in Australia’s effort to tax Big Tech.

Novartis shares fell after a setback in developing a heart-failure medicine, weighing on European stocks. U.S. markets were closed for the Labor Day holiday. Australian share futures pointed to a softer open, while the Australian dollar strengthened against the greenback. On the London Metal Exchange, the three-month copper benchmark briefly hit a record $14,533 a tonne.

Australia’s supermarket giant Coles has confirmed it will not renew its contract with Palantir beyond 2027. The partnership, signed in early 2024, gave Palantir access to more than 10 billion rows of operational data. The decision followed pressure from a consumer privacy campaign that gathered more than 85,000 signatures and placed advertising outside close to 700 stores.

Nvidia said it would buy the artificial intelligence platform Hugging Face for $US13 billion ($18 billion), sending its shares up 1.8%. Hewlett Packard Enterprise posted quarterly results that beat analysts’ estimates. The company also raised guidance for cloud and AI demand, pointing to sustained strength in AI infrastructure spending.

Uber says it will cut 3,300 jobs globally, about 3% of its workforce, as it moves to streamline its cost base. The company says it will reinvest the savings in autonomous-vehicle efforts, including more than $US10 billion in commitments. In Australia, Uber generated more than A$14.5 billion in revenue last year and A$2.12 billion in gross profit, but most was paid out as service fees to overseas related companies. That left the local business with a net profit of A$8.7 million.

Another round of US military strikes on Iran pushed oil prices higher, renewing concerns that inflation will remain stubborn. With inflation still above 3%, markets increasingly expect the Federal Reserve to raise interest rates before year-end, with the implied probability of a September hike rising to 66%. Higher oil and rate expectations weighed on risk appetite, dragging major US stock indexes lower.