Australian shares rebounded from a $45 billion wipeout after the US and Iran reportedly reached a tentative deal to extend their ceasefire, lifting optimism that the three-month conflict could be nearing an end.
The S&P/ASX 200 Index was up 0.8 per cent, or by 70 points, to 8662.90 at 10.12am AEST, after falling by 1.4 per cent on Thursday following military strikes between the US and Iran. The benchmark is on track to close the week 0.1 per cent higher and end the month flat.
Brent crude fell to a one-month low of below $US94 per barrel following a deal to extend the ceasefire by 60 days and further discuss Tehran’s nuclear program. US President Donald Trump has yet to agree to the terms.
“Markets are increasingly pricing a Hormuz reopening and a peace dividend, but that optimism still depends on diplomacy delivering barrels rather than simply delivering headlines,” SPI Asset Management managing partner Stephen Innes said.
On the ASX, materials were the strongest after gold rose 1 per cent overnight on the tentative deal. Northern Star rose 4.9 per cent, Greatland Resources by 7.8 per cent and Newmont 4.3 per cent. BHP rose 1.6 per cent.
Banks nudged higher as financials remain on track to fall almost 4 per cent for May. National Australia Bank added 0.7 per cent, ANZ and Commonwealth Bank both gained 0.6 per cent, and Westpac by 0.3 per cent.
The pullback in oil weighed on energy, with Woodside Energy off 1.6 per cent and Santos 0.9 per cent.
Stocks in focus
In corporate news, Insurance Australia eased 0.3 per cent as it settled a major portion of the long-running Greensill litigation, which it said would have no material impact on its financial position.
Tourism Holdings soared 31.2 per cent after BGH Capital and Queensland brothers Karl and Luke Trouchet upped their offer to $NZ3.10 per share to buy the dual Australian and New Zealand-listed campervan business.
Infant formula maker Bubs Australia fell 2.1 per cent as it expected FY26 revenue of $105 million to $115 million and underlying EBITDA of $4 million to $8 million.
Webjet rose 1.2 per cent as long-serving finance executive Layton Shannos is taking over as acting chief executive from Monday, with the departing Katrina Barry entering into a consultancy agreement with the business.
