Local shares dip, miners slump as Hormuz tensions flare

The ASX has closed down as mining stocks continue to drag on the bourse. (Paul Braven/AAP PHOTOS)

Australia's share market has resumed its decline after a container ship in the Strait of Hormuz was hit by a projectile, testing a fragile truce between the US and Iran.

The S&P/ASX200 fell 27.1 points on Tuesday, down 0.31 per cent to 8,803.9, as the broader All Ordinaries lost 32.3 points, or 0.36 per cent, to 9,004.7.