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AAP
AAP
Business
Derek Rose

Australian shares drop on fears of expanded Mideast war

Concerns of further conflict in the Middle East has investors on edge. (Dan Himbrechts/AAP PHOTOS)

The local share market has dropped after Iran's reprisal drone strike on Israel, raising fears the conflict could spiral into a broader regional war.

The benchmark S&P/ASX200 index on Monday dropped 35.6 points, or 0.46 per cent, to a nearly four-week low of 7,752.5, while the broader All Ordinaries fell 40.8 points, or 0.51 per cent, to 8,009.4.

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