The Australian sharemarket finished higher on Monday as optimism surrounding a potential agreement between the United States and Iran helped push oil prices sharply lower and supported broader investor sentiment.
The S&P/ASX 200 Index closed up 35.0 points, or 0.4%, at 8,692.0, with six of the 11 sectors ending the session in positive territory.
Materials stocks led much of the market’s gains as gold prices climbed more than 1% amid a weakening U.S. dollar, lifting major gold producers.
Northern Star Resources rose 5.7%, Evolution Mining gained 4.2%, and Newmont Corporation added 5.1%.
Resolute Mining was among the market’s strongest performers, surging 9.4% to lead gains on the benchmark index.
Major diversified miners also traded higher, with BHP Group adding 0.6%, and Rio Tinto rising 1.6%.
Fortescue climbed 1.7% after announcing that executive director and former chief executive Elizabeth Gaines would leave the board on 30 June after 13 years with the company. Former Dutch finance minister Sigrid Kaag is set to join the board.
The Energy sector was the weakest area of the market after Brent crude prices dropped 5.5% on expectations that a potential agreement between Washington and Tehran could restore oil and gas flows through the Strait of Hormuz.
Santos fell 3.6%, while Woodside Energy and Ampol each lost 4.2%.
Beach Energy declined 1.3% after unveiling plans to sell its 60% stake in the VIC/L35 permit in the Otway Basin in a transaction valued at about A$130 million.
Coal mining stocks outperformed despite weakness across the broader Energy sector, with Whitehaven Coal rallying 9.1% and Yancoal Australia gaining 7.8%.
Meanwhile, Charter Hall climbed 6.7% after upgrading its 2026 operating earnings guidance for a third time.
The property group lifted expected earnings guidance from $1.00 to $1.03 per share after institutional capital inflows for the year surged to a record $6.5 billion.
On the bond markets, Australian government bond yields moved lower, with 10-year yields down 0.7% to 4.887% and two-year yields falling 1.2% to 4.57%.
