Australian shares wobble as oil keeps traders on edge

Energy and utilities stocks led the market as broadening Middle East conflict sent Brent crude towards the $US100 a barrel for the first time since July, while record copper prices bolstered BHP and Rio Tinto.

Banks and retail stocks swung in the other direction, continuing their decline after Tuesday's dire consumer and business confidence data, while the health care sector also dragged.

The Australian dollar is trading at four-month highs of 72.30 US cents, up from 72.11 US cents on Tuesday at 5pm.