SYDNEY — The S&P/ASX 200 index tumbled more than 50 points in midday trading Tuesday, closing in on its recent lows as investors braced for an expected Reserve Bank of Australia interest rate hike and grappled with soaring global oil prices amid escalating Middle East tensions.

At around 1 p.m. AEST, the benchmark stood at 8,646.9, down 50.2 points or 0.58% from Monday's close of 8,697.1. The index swung between a high near 8,697 and a low of 8,621.6, reflecting broad selling pressure across key sectors.

The decline comes ahead of the RBA's policy decision later Tuesday, with markets pricing in a strong likelihood of a 25-basis-point increase to 4.35%. Economists widely expect the central bank to tighten policy for a third consecutive meeting to combat persistent inflation, fueled in part by higher energy costs.

"This move reflects caution ahead of the RBA call," one Sydney-based trader noted. "Higher-for-longer rates are weighing on consumer-facing stocks and adding pressure to an already softening economy."

Energy and Mining Drag Heavily

Rising oil prices provided a mixed signal but ultimately hurt sentiment. Brent crude jumped sharply overnight, climbing toward $114 a barrel after reports of Iranian military actions disrupting shipping in the Strait of Hormuz. While energy giants like Woodside........

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