March 12 (Reuters) - Australian shares fell on Thursday, following a brief two-session recovery, as an oil price surge linked to the Middle East conflict heightened inflation concerns, dampening risk appetite and boosting expectations for a rate hike next week.

The S&P/ASX 200 index .AXJO was down 1.3% at 8,633.10, as of 2337 GMT.

Oil prices climbed sharply as supplies from the Gulf remained constrained following ship attacks in the Strait of Hormuz, a key chokepoint for global crude trade. O/R

As a result, markets have increased their expectations of an interest rate hike from the Reserve Bank of Australia next week, with the central bank likely to address rising cost-of-living pressures driven by higher fuel costs.

Markets quickly lifted the probability of a hike next week to around 78%, from under 30% early this week, with a further move fully priced by August. 0#AUDIRPR

Australian financials .AXFJ lost 1.2%, dragged by top lender Commonwealth Bank of Australia's CBA.AX 0.7% fall, while ANZ ANZ.AX fell nearly 2%. Shares of leading investment bank Macquarie Group MQG.AX fell as much as 2.3%.

Miners .AXMM lost 1.7%, pressured by BHP BHP.AX and Fortescue's FMG.AX 1.4% and 1.8% plunge, respectively.

The sub-index was weighed down further by Australian gold sector .AXGD, down 2.2%, with Pantoro Gold PNR.AX and Evolution Mining EVN.AX falling 4.5% and 2.1%, respectively.

Gold stocks, once ASX favourites after more than doubling last year, have erased most of their gains this year as the U.S. dollar strengthened during the Middle East conflict.

Real estate stocks .AXRE fell 2.5%, weighed down by data centre landlord Goodman Group GMG.AX, which dropped 3.6%. Healthcare stocks .AXHJ slipped 1.3%.

Technology stocks .AXIJ declined 3.6%, tracking overnight losses on the Wall Street, with software firm WiseTech Global WTC.AX tumbling 4.6%.

Energy stocks .AXEJ rose 1.4%, bucking the broader market trend as oil prices strengthened. The sector has gained 22.8% so far this year after lagging the benchmark's performance over the past three years.

New Zealand's benchmark S&P/NZX 50 index .NZ50 was down 0.4% at 13,236.46 points.

(Reporting by Nichiket Sunil in Bengaluru; Editing by Sherry Jacob-Phillips)

((Nichiket.Sunil@thomsonreuters.com;))

For more information on DIARIES & DATA: U.S. earnings diary  RESF/US   Wall Street Week Ahead   .N/O Global Economy Week Ahead DATA/ ................................................................ For latest top breaking news across all markets          NEWS1