Market Wrap / market mayhem

The local share market has been caught up in the global sell-off of risk assets amid the escalating Middle East conflict.

Compounding the losses were stronger-than-expected economic growth figures with GDP over the year to December coming in at 2.6%, rekindling inflation concerns and the likelihood of more interest rate-hikes.

The S&P/ASX 200 slid 1.9% to 8,901.20, its biggest daily fall since last April's tariff tantrum.

Markets around the region plunged, with trading in South Korea's KOSPI Index halted amid a circuit-breaker when stocks reached the daily 10% down limit.

The miners led the losses locally, after iron ore prices fell, as investors considered rising freight costs due to the Iran conflict. BHP ended 3.5% lower.

Gold stocks suffered after the price of bullion fell as much as 6% before recovering with Newmont and Westgold among the worst performers.

And the energy sector was also weaker as the market took profits with uranium stocks particularly hard hit; Paladin falling 7.6%.

The financials didn't escape the carnage with a fifth straight session of declines; ANZ finishing 3.7% lower.

And travel stocks continued to take a beating, with Virgin Australia dropping 2.9%.Elsewhere, ARN Media shares rose 4.4% as the media company terminated Jacki O Henderson's 10-year $100 million contract.