Staff reportersJuly 13, 2026 — 6:25amThe local sharemarket posted a volatile start to the week on Monday, with early gains all but erased by market close amid uncertainty following further US strikes on Iran and a weak showing from the country’s tech stocks.The S&P/ASX 200 closed almost entirely flat, gaining just 2.5 points to 8808 by market close. This was despite early gains aided by energy stocks, with the price of Brent crude oil climbing 3 per cent at the open.Markets face more uncertainty after a wave of strikes on Iran over the weekend and Tehran closing the Strait of Hormuz to shipping. Peter BraigEnergy remained one of the day’s better performers, being one of five out of 11 market sectors to end in the green. Refiner Ampol gained 4.5 per cent, Woodside rose 1 per cent and Santos gained 0.3 per cent.Iron ore and copper miners BHP and Rio Tinto both fell slightly, while Fortescue rose 1.3 per cent. Gold producers Northern Star Resources (-2.6 per cent) and Evolution Mining (-1.5 per cent) fell as the price of the precious metal dipped slightly.Tech stocks were the biggest drag on the bourse, continuing a poor run which has seen the sector drop nearly 20 per cent since the start of the year. WiseTech was down 2.2 per cent, Xero fell 4.6 per cent and NextDC lost 3.3 per cent.Semiconductor developer Weebit Nano was one of the day’s biggest losers, dropping 10.5 per cent after a strong rally towards the end of last week.The Australian dollar was trading at US69¢ at 4.30pm.The US military launched strikes Sunday aimed at further weakening Iran’s ability to attack civilian vessels transiting the Strait of Hormuz, the US Central Command said. The latest action followed Iranian drone and missile attacks on US allies including Kuwait, Jordan and Qatar in response to earlier US strikes.Confusion over the status of the Strait of Hormuz added to the uncertainty, with Iran saying it had closed the waterway, while the US military and maritime authorities said shipping continued through its southern route.“The latest developments over the weekend suggest markets may face a volatile start to trading, which could test the glass half full mentality we have seen recently,” Nick Twidale, chief market analyst at AT Global Markets, wrote in a note to clients.Investors are also bracing for a pivotal earnings season, with results from Goldman Sachs and JPMorgan Chase due Tuesday (US time). S&P 500 companies are expected to post a 24 per cent jump in second-quarter profits, though the benchmark’s rally has become increasingly reliant on gains outside the technology megacaps that have driven markets in recent years.In Europe, Deutsche Bank strategists expect Stoxx 600 firms to report a 12 per cent jump in second-quarter earnings, following a 7 per cent rise in the first quarter. Profits for MSCI Asia Pacific constituents are estimated to rise 39 per cent, up from 6.9 per cent in the previous three months, data compiled by Bloomberg shows.The outlook is being tested by persistent inflation, higher energy prices and growing expectations the Federal Reserve may resume raising interest rates, threatening corporate margins. With US and global equities trading near record highs and valuations elevated, investors see little room for disappointing results.Investors will closely gauge this week’s US inflation data, after oil’s biggest weekly gain since mid-May revived concerns that higher energy costs could further complicate the disinflation story. Consumer and producer price reports – the last inflation readings before the Fed meets later this month – will offer fresh clues on the path of interest rates.Traders have ramped up bets on further tightening, with swaps pricing almost 40 basis points of Fed hikes by December, up from about 15 basis points in early June. Economists surveyed by Bloomberg expect both headline and core inflation to have eased slightly in June, though both are forecast to remain well above the Fed’s 2 per cent target.Oil traders continued parsing every signal from Washington and Tehran while equity investors look to quarterly results.ReutersFlorian Ielpo, head of macro at Lombard Odier Investment Managers, argues markets are still pricing expansion rather than stagflation. AI investment is lifting expectations for earnings even as it pushes up demand for capital, allowing equities to absorb higher borrowing costs more easily than gold does.“Higher real yields are not yet simply a tightening shock for equities: they are also the price of a stronger investment and profit cycle,” Ielpo said. “The risk would emerge if real yields continued to rise after expected earnings stopped improving.”Fed Chair Kevin Warsh will also make his first congressional appearance since taking the helm after pledging to scale back forward guidance on the rate outlook.Elsewhere this week, Tuesday’s release of the July Westpac consumer sentiment survey and June NAB business conditions report will give indications of cost-of-living impacts in Australia, as will the closely watched July MI inflation expectations gauge. Asian markets will look to China’s second quarter growth data for fresh signs of a slowing economy from sluggish domestic demand. Growth is estimated to have slowed to 4.5 per cent year-on-year, dragging the year-to-date rate to 4.8 per cent.Traders will also be watching the Bank of Korea’s policy decision on Thursday after Governor Shin Hyun Song warned that inflation, solid economic growth, a weak won and surging home prices all point to tighter monetary policy. All economists in a Bloomberg survey expect the BOK to lift its base rate to 2.75 per cent.With BloombergThe Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.More:SharemarketInvestingAussie dollarSharesBondsCommoditiesCurrenciesFrom our partners