Shares take a hit, falling more than 1 per cent on opening, as violence in the Strait of Hormuz and worries about overinflated AI stocks weigh on sentiment.

Australian shares expected to fall slightly after rallying last week following strong gains by gold miners.

Australia’s sharemarket has resumed its decline after a container ship in the Strait of Hormuz was hit by a projectile, testing a fragile truce between the US and Iran.