SYDNEY — Australia's benchmark S&P/ASX 200 index clawed out modest gains Monday, rising as much as 0.45% in early trade before paring back to a 0.13% advance by mid-morning, as investors weighed surging oil prices tied to the escalating war between the United States and Iran against a deepening global selloff in semiconductor stocks.

The index sat at 8,797.7 points shortly after noon Sydney time, up slightly on the day after finishing the prior week 0.5% lower at 8,796.7. Futures had pointed to a stronger open, with ASX 200 futures up 54 points, or 0.61%, ahead of the session, but several sectors including materials, industrials, consumer staples, consumer discretionary and healthcare that opened higher had slipped back into negative territory by mid-morning.

Oil surges as Middle East conflict widens

Energy was the standout sector Monday, with Brent crude trading 3.1% higher at $91.07 a barrel, its highest level since June 11 and a 27.8% rally since hitting a low on July 1. The gains came as the war between the United States and Iran entered its sixth month with no sign of resolution. Three U.S. service members have died in the conflict, including two killed in an Iranian missile and drone attack in Jordan and a third during the controlled detonation of a downed Iranian drone in northern Iraq, marking the first American fatalities from Iranian fire since March.

U.S. forces have carried out eight consecutive nights of strikes on Iranian air defenses, coastal installations, and missile and drone storage sites, while Iran has widened its retaliation to strike U.S. allies in the Gulf, hitting a power and desalination plant in Kuwait for a second........

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