The Australian sharemarket slipped from Monday’s record high as investors weighed the potential impact of rising oil prices amid escalating conflict in the Middle East.

The S&P/ASX 200 Index fell 0.3%, or 24.50 points to 9176.40 at 10.15 am AEDT, with eight of the 11 sector weaker.

Energy stocks continued to limit the damage on the ASX as Brent climbed 6.7% to $US77.74 per barrel at the open, while natural gas gained 3.5% to $US2.96 as Qatar shut down liquefied natural gas production at the world’s largest export facility after it was targeted in an Iranian drone attack.

“The markets are treating the war between the US, Israel and Iran as a significant but relatively manageable and brief supply shock,” Capital.com senior market analyst Kyle Rodda said.

Woodside rose 1%, Santos 0.7%, Beach Energy 0.9% and Ampol 2.7%. Uranium miners contributed to gains with Deep Yellow up 3% and Paladin 2.8%.

The major banks rebounded from losses on Monday as Westpac added 0.1%, Commonwealth Bank 0.4%, ANZ 0.9%, and National Australia Bank by 1.1%.

Qantas extended losses for a second day as it fell 2.6%. It came as UAE-based Etihad Airways and Emirates resumed a limited number of flights overnight. DroneShield climbed 1.6% as it continued to benefit from conflict in the Middle East.