SYDNEY — Australian shares closed lower Thursday, with the S&P/ASX 200 index falling 22.6 points, or 0.26 percent, to 8,762.5, as renewed hostilities between the United States and Iran pushed oil prices sharply higher and weighed on the broader market, even as energy stocks posted strong gains on the back of surging crude prices.

The decline extended a difficult run for Australian equities, marking the fourth consecutive session of losses. The index fell 0.3 percent to close at 8,804 on Tuesday, then dropped a further 0.2 percent to 8,785 on Wednesday, as investors grew increasingly cautious following the collapse of the ceasefire agreement between Washington and Tehran. President Donald Trump declared the U.S.-Iran ceasefire "over" earlier this week, and American forces launched fresh strikes against Iran on Tuesday in response to attacks on three commercial vessels transiting the Strait of Hormuz, sending oil prices climbing roughly 11 percent over the past five trading sessions.

Thursday's session opened sharply lower, with the ASX 200 down as much as 0.9 percent in early trade before paring some losses through the day. Key sectors including materials, financials and healthcare each fell more than 1 percent during the session, while energy stocks continued their strong recent run, climbing further as oil prices extended their advance. The S&P/ASX 200 Energy index rose 1.9 percent Thursday, marking its second consecutive day of gains and pushing the sector to a near three-week high, with strength spanning coal, refining, uranium, and oil and gas names. Utilities stocks with exposure to liquefied natural gas markets, including AGL Energy and Origin Energy, also moved higher........

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