Australia's share market has wiped the previous session's gains, amid a re-escalation of tensions between the US and Iran.
The S&P/ASX200 fell 111.2 points by midday, down 1.27 per cent, to 8,674.5, as the broader All Ordinaries lost 110.9 points, or 1.23 per cent, to 8,906.3.
The slump followed a weak session on Wall Street after a record-breaking rally in US tech stocks ran out of steam.
"Financial markets shifted back into a risk-off mode as the US and Iran exchanged fire again," Westpac economist Mantas Vanagas said.
"With military action intensifying and tensions over Israel's campaign in Lebanon rising, the two countries appear to be moving further away from common ground on a lasting agreement."
In a positive sign, Israel and Lebanon have agreed to implement a ceasefire provided Hezbollah halts attacks on Israel, which could lead to a resumption of talks between the US and Iran.
