Australian shares dropped 1.5 percent on opening this morning, a four-month low wiping off about $50 billion as oil prices surged as energy infrastructure on all sides in the Middle East came under attack. Overnight, oil prices surged again, with brent crude, the global oil benchmark, hitting US$110 a barrel. The oil surge price sent more shockwaves around financial markets at the same time the White House was doing its best to alleviate fears about rising energy prices.