Australian Shares Set to Rise as Oil Prices Plunge 4.2%; Worley (ASX: WOR) Lifts FY26 EBITA Impact Forecast to AU$60M

Australian Shares are expected to open higher as a sharp decline in oil prices improves investor sentiment across the market. Lower crude prices have eased concerns about energy-driven inflation and supply disruptions linked to the Strait of Hormuz. At the same time, engineering giant Worley (ASX: WOR) has updated investors on the expected earnings impact from Middle East-related disruptions, drawing fresh attention from market participants.

Australian Shares Gain Support as Oil Prices Fall 4.2%

Australian Shares are set for a positive start after oil prices dropped 4.2% overnight, reversing part of the recent rally driven by Middle East tensions. According to Market Screener, easing fears over oil supply disruptions through the Strait of Hormuz helped calm global energy markets.

Why are investors reacting positively?

Lower oil prices can reduce transportation and operating costs for businesses. They can also ease inflation pressures, which may support future interest rate expectations and consumer spending. Travel and consumer-related stocks are expected to benefit the most, while energy producers could face pressure from weaker crude prices. Recent market moves have shown that falling oil prices often improve sentiment toward sectors that are sensitive to fuel costs.

Australian Shares Watch Worley After FY26 Earnings Update

Worley (ASX: WOR) announced that the expected impact on FY26 underlying EBITA from Middle East-related disruptions has increased to approximately AU$60 million. The update reflects project delays, slower contract awards, and ongoing uncertainty across the region. Earlier guidance had pointed to an EBITA impact of AU$30 million to AU$40 million, making the latest estimate a notable increase.

Has Worley lost any projects?

The answer is no. The company stated that no projects have been cancelled so far, although delays in execution and new project approvals continue to affect operations.

Australian Shares Focus on Worley’s Underlying Business Strength

• Despite the revised earnings impact, several operating metrics remain strong.
• Worley reported HY26 aggregated revenue of AU$6.312 billion, up 5.4% year over year. Underlying EBITA reached AU$377 million, while bookings surged 63% to AU$9.8 billion.
• The company also maintained a substantial backlog of AU$16.7 billion, providing long-term revenue visibility and supporting confidence in future earnings.
• Underlying EBITA margin improved to 8.8% from 8.4% a year earlier, highlighting progress in operational efficiency despite market challenges.

Australian Shares Outlook: What Investors Should Monitor Next

The combination of lower oil prices and easing supply concerns could provide near-term support for Australian Shares. Investors will be watching whether crude prices remain below recent highs and whether geopolitical risks continue to fade.

For Worley, the key focus will be project execution, contract awards, and its ability to protect margins despite the estimated AU$60 million FY26 EBITA impact. Strong bookings of AU$9.8 billion, an AU$16.7 billion backlog, and management’s longer-term growth strategy remain important positives.

What could move Australian Shares in the coming days?

The biggest drivers will be oil price movements, global risk sentiment, and updates from major ASX-listed companies. Any further easing in energy prices could support sectors such as travel, transport, and consumer discretionary stocks.

Market Analysis: Why This Matters for Investors in 2026

Australian Shares are entering the new trading session with a more supportive backdrop after a significant drop in oil prices. The 4.2% decline in crude has reduced immediate concerns about inflation and supply disruptions, improving risk appetite across equity markets.

For Worley, the higher AU$60 million FY26 EBITA impact forecast reflects real challenges in the Middle East. However, the company’s strong fundamentals continue to stand out. Revenue of AU$6.312 billion, underlying EBITA of AU$377 million, bookings of AU$9.8 billion, and a backlog of AU$16.7 billion show that demand for its services remains healthy.

Investors are likely to focus on whether delayed projects return to normal activity during FY26. If oil prices remain stable and geopolitical risks continue to ease, Australian Shares could see broader support, while Worley remains positioned to benefit from its large project pipeline and long-term infrastructure and energy transition opportunities.

Disclaimer

The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.