Australian mining shares boosted by US, Iran preliminary peace deal
Australian shares extended gains on Monday as the US and Iran agreed to a preliminary peace deal, while oil prices tumbled, sending energy stocks lower, with Woodside Energy falling after denying takeover talks with Exxon Mobil.
The S&P/ASX 200 index raced past the 8 900 mark in early trading, rising 1.5% to 8928.50 by 00:39 GMT, briefly touching its highest level since April 22.
The benchmark added more than 2% last week, helped by de-escalations in the conflict and higher hopes that the central bank will end its tightening cycle at its policy meeting this week.
US and Iranian officials said they have agreed on a peace framework for a deal to end their war, halt the US blockade of Iran and reopen the Strait of Hormuz, which could lower energy prices once oil shipments resume through the critical waterway.
This boosted gold prices, helping local gold stocks surge 8%, and setting the sub-index up for its best day in over two months.
Major gold producer Northern Star Resources jumped 5.3%, and rival Evolution Mining soared 9%. Smaller Vault Minerals rocketed 13% after saying it was on track to meet its 2026 production guidance.
The mining sub-index rose 3.7%, with top-weighted BHP and Rio Tinto gaining 3.1% and 1.6%, respectively.
Locally, investors will be keeping an eye on the Reserve Bank of Australia's cash rate decision this week, with a rate hold largely expected following a slew of weak domestic economic data.
Meanwhile, oil prices tumbled, with energy stocks sliding 2.5%.
Woodside Energy fell 1.6%. The oil and gas producer said it was unaware of any proposal involving Exxon Mobil and was not engaged in takeover discussions.
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