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Good afternoon, and welcome to The ASX Today. The Australian market has charged to a two-month high today as investors celebrate what could be the biggest geopolitical breakthrough of the year.
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A tentative deal between the United States and Iran to finally reopen the Strait of Hormuz has sparked a broad relief rally across global markets, easing fears over oil supply disruptions that have dominated investor sentiment for months. By lunchtime, the ASX was up +1.2%, and around 8,920 points.
The big story is oil. Brent crude plunged more than 4%, towards US$83 a barrel, as traders rapidly unwound risk positions built during the conflict. That sent energy stocks lower, but gave the rest of the market room to run.
Materials were among the biggest winners as gold bounced 2.5% to around US$4,324 an ounce. Newmont rallied 6.7%, Northern Star jumped 7.3%, and Ora Banda rocketed 13.1% after locking in a $233 million contract for its Davyhurst mill expansion. Mining heavyweight BHP also joined the rally, up 3.3 per cent.
But not everyone was celebrating. Energy stocks were smashed: Viva plunged 8.9%, Karoon dropped 8%, and Woodside slid 3.5% after this week rejecting takeover speculation involving ExxonMobil.
Among the corporate movers, Sigma Healthcare gained 7% on stepping away from a controversial potential bid for U.K. pharmacy giant Boots – a move investors appear to have welcomed. Vault was another standout, soaring 15.3% after forecasting up to 360,000 ounces of gold production in FY26.
And, bourse operator ASX Limited rose 1.9%, despite this morning agreeing to pay a $20.5 million penalty to settle ASIC action relating to statements made about its abandoned CHESS replacement project.
Elsewhere, oOh!media up 6.9% after receiving a revised takeover proposal, while Atlas Arteria higher as IFM Investors sweetened its hostile bid.
Abroad, investors are preparing for another major event, with the Bank of Japan expected to lift interest rates to their highest level since 1995. But for today, markets are simply focused on taking a sigh of relief. After months of war headlines, oil shocks and market volatility, investors are betting a reopening of the Hormuz Strait could remove one of the biggest risks hanging over markets.
That’s The ASX Today, I’ll see you tomorrow.
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