The Australian sharemarket shed $90 billion in value Sunday as oil's surge past US$100 per barrel triggered a global selloff and renewed fears that inflation will force central banks to reverse course on interest rate cuts.

The ASX closed sharply lower as The Guardian reported, with resource stocks paradoxically among the hardest hit despite higher energy prices typically benefiting the sector. Investors fled to safe-haven assets amid uncertainty over how quickly the oil shock will feed through to consumer prices.

The rout follows escalating conflict in the Middle East that has disrupted shipping routes and raised concerns about supply constraints from major producers. Oil's breach of the psychological US$100 mark represents a 40% increase from six months ago.

For Australia, the timing couldn't be worse. The Reserve Bank had signaled potential rate cuts later this year as inflation moderated toward its 2-3% target band. Now those hopes are in jeopardy, with NAB warning that sustained oil prices at current levels could push inflation above 5% - forcing the RBA to hold rates higher for longer.

The Australian dollar fell sharply against the US dollar and yen as investors repositioned for a more hawkish central bank outlook. A weaker currency will compound inflationary pressures by making imports more expensive, creating a feedback loop that could keep rates elevated well into 2027.

Retirement savings took a hit, with industry superannuation funds likely to report negative returns for the quarter. The median balanced fund - which most Australians hold - has roughly 70% equity exposure, meaning the sharemarket rout directly impacts retirement accounts.

Mate, there's a whole continent down here trying to build wealth. And right now, global oil markets are burning through billions in savings.

The selloff wasn't confined to Australia. Markets across Asia posted heavy losses, with 's Nikkei and 's Hang Seng both dropping more than 3%. Wall Street futures pointed to a weak open in .