ASX hits record high as oil plunges on peace hopes for a US-Iran deal
Australia's S&P/ASX200 index climbed to a fresh record high on Wednesday, driven by falling oil prices amid hopes that the United States and Iran are nearing a peace deal. The rally mirrored a record-breaking session on Wall Street and reflects broad investor confidence, with gains spread across most sectors rather than concentrated in a single trade, according to analysts. Mining stocks were the standout performer, while the major banks pulled back after briefly hitting their own record high.
The ASX200 rose more than 0.7 per cent to 9,213 points, surpassing its previous record of 9,202.9 set in February before the Persian Gulf conflict, though gains had eased to 0.19 per cent by 11am. The mining sector jumped 2.5 per cent, while financials fell 1.3 per cent, with Commonwealth Bank dropping 2.5 per cent to $176.19 after a recent 15 per cent rally. Analysts pointed to resilient household spending data, softer inflation figures, a measured tone from Reserve Bank governor Michele Bullock, and new financial-year inflows as further tailwinds, while oil hit three-week lows on reports of progress towards reopening the Strait of Hormuz. The Australian dollar also strengthened, buying 70.45 US cents.
- ASX200 hit a record 9,213 points on broad-based gains
- Oil prices fell on hopes of a US-Iran peace deal
- Mining stocks surged; major banks pulled back after their own record
New here? Start with this
The market rally links back to a long-running standoff between the United States and Iran, which has kept oil markets on edge for months. Iran is a major oil producer, and past tensions – including military strikes, sanctions and disruption fears in the Gulf – have periodically pushed crude prices up, which in turn raises costs for businesses and consumers worldwide.
The ASX, or Australian Securities Exchange, is Australia's main share market, and its overall level is often tracked as a broad gauge of investor confidence in the economy. Share markets and oil prices are closely linked because cheaper oil tends to lower inflation and production costs, making companies more profitable and shares more attractive to buy.
This matters because any sign of easing tension between Washington and Tehran can ripple through global markets, affecting everything from petrol prices to retirement savings tied up in shares. A record high on the ASX also reflects how sensitive Australian investors are to international events far beyond its borders.