The sharemarket has lost ground in early trade, as rising oil prices and a flare-up in Middle East tensions reignited inflation concerns.

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.

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.