Iran has named hardliner Mojtaba Khamenei as the country’s new supreme leader; Donald Trump says oil price spike ‘a small price to pay’ as markets tumble

• Full report: Ali Khamenei’s son Mojtaba chosen as Iran’s new supreme leader

• Tell us: how have you been affected by the latest events in the Middle East?

Australian shares plunged on Monday, wiping about $13obn from the value of the ASX midway through the trading session, after a sharp rise in oil prices caused by the Middle East conflict sparked concerns of a breakout in global inflation.

The benchmark S&P/ASX 200 was down 4% in lunchtime trading to dive below the 8,500 point mark, marking the single biggest one-day drop since the announcement of Donald Trump’s “liberation day” tariffs last year.