Australian Market Rises as Energy Sector Ignites on Santos Deal Buzz

June 16, 2025 11:49 AM AEST | By Team Kalkine Media

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Australian Market Rises as Energy Sector Ignites on Santos Deal Buzz — Image source: shutterstock

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Highlights

Energy sector surges on Santos-led momentum

Global tensions elevate oil and uranium markets

Regulatory scrutiny pulls ASX operator down

The Australian share market edged higher during early trade, lifted significantly by a strong performance in energy stocks—most notably Santos (ASX:STO)—after a major takeover proposal reignited investor interest in the sector.

Santos Drives Market Sentiment

The S&P/ASX 200 index gained 27.8 points, or 0.33%, reaching 8,575.2 by 10:30am AEST. Among the key drivers was Santos (ASX:STO), which surged over 14.5% before slightly easing. The rally was sparked by news that the oil and gas company had received a substantial $30 billion acquisition offer from a consortium led by Abu Dhabi’s state-owned energy entity. This development positioned Santos as the day's standout performer and powered the broader energy sector to a 6.5% gain.

Oil and Gas Peers Rally Amid Global Uncertainty

Other energy-related companies also experienced notable upward momentum. Woodside Energy (ASX:WDS) advanced 5.8%, Ampol (ASX:ALD) added 4%, Beach Energy (ASX:BPT) climbed 5.4%, and Karoon Energy (ASX:KAR) rose 4.3%. These gains were further supported by geopolitical tensions, particularly involving Israel and Iran, which raised concerns about potential disruptions to global crude supply.

Uranium Stocks Spark Higher on Middle East Tensions

The effects of the conflict extended beyond oil markets. Reports surfaced that an Israeli strike had targeted a key Iranian uranium enrichment facility. This development spurred a sharp rise in uranium stocks. Deep Yellow (ASX:DYL) jumped 17.4%, Paladin Energy (ASX:PDN) rose 14.6%, and Boss Energy (ASX:BOE) climbed 12.8%. These movements reflected increased attention on nuclear-related energy assets amid geopolitical uncertainty.

Regulatory Scrutiny Weighs on ASX Operator

While energy and uranium names rallied, shares of the Australian Securities Exchange operator (ASX) tumbled 4.6%. This came after the Australian Securities and Investments Commission (ASIC) announced it would initiate an inquiry into the exchange’s governance, capability, and risk management practices. The investigation marks a significant regulatory focus that weighed heavily on sentiment around the company.

Market Outlook Steadies Amid Mixed Cues

Despite the divergent movements across sectors, seven of the eleven sectoral indices traded in positive territory, suggesting broader market resilience. Investors remained watchful of evolving geopolitical risks and regulatory developments while capitalising on opportunities arising from major corporate news and global energy dynamics.

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