The ASX 200 dropped 73 points, or 0.8%, to finish at 9,115 on Friday, extending its losing streak to three sessions and marking its lowest close in over a week. Risk sentiment deteriorated after U.S. futures fell in response to fresh tariffs on drone imports imposed by President Trump, a move analysts said was mainly aimed at China. Investors were also digesting comments from US Treasury Secretary Bessent, who on Thursday warned of unprecedented action against Iran and promised "economic isolation like the world has never seen." In Australia, second-quarter housing lending fell to a three-quarter low, although the rate of decline slowed from the previous period. Market focus is now shifting to July labor data due next week after June's unemployment rate held steady. Losses were concentrated in transport, industrials, healthcare and non-energy minerals. BHP and Rio Tinto fell 3.4% and 2.9%, while three of the four major banks also retreated. Gold miners underperformed, with Evolution Mining down 4.0% and Northern Star losing 3.2%. For the week, the index declined 1.6%, wiping out gains accumulated over the previous three weeks.