Australia's share market is rebounding from Monday's bloodbath, as oil prices eased on assurances from US president Donald Trump the war in Iran won't last long.
The S&P/ASX200 gained 119.5 points by midday Tuesday, up 1.39 per cent, to 8,716.4, as the broader All Ordinaries jumped 118.5 points, or 1.34 per cent, to 8,9421.
The move in the top-500 adds about $40 billion to its combined $2.99 trillion market cap, after roughly $90 billion was wiped from the index on Monday.
Oil prices eased overnight and equities staged a relief rally, after US President Donald Trump said the war in Iran was "going to be finished pretty quickly", despite demanding Iran's unconditional surrender a few days earlier.
Markets had been watching closely for signs Mr Trump would change tack, Capital.com senior market analyst Kyle Rodda said.
"The argument is President Trump wouldn’t be able to stomach higher oil prices and a cost-of-living crisis going into mid-term elections," Mr Rodda said.
"But the critical issue will be substantial evidence that oil is flowing through the Strait of Hormuz, Gulf nations are returning output to normal, and critical energy infrastructure is safe, and there’s minimal risk of being attacked again."
Finance ministers from G7 nations also floated the idea to release fuel from strategic reserves to stabilise supply, further calming crude price pressures.
Energy stocks made up the only sector trading lower by lunchtime, tumbling 3.4 per cent as Brent crude eased to $US88 a barrel after spiking as high as $US115 on Monday.
Woodside and Santos sunk 4.5 per cent and three per cent respectively, while coal producers also sold off and uranium stocks bounced higher.
Basic materials stocks rebounded 1.9 per cent in a broad-based rally, with BHP up 2.6 per cent to $51.22, as iron ore futures rose to five-week highs near $US104 a tonne.
Fortescue shares traded flat as the company announced the completion of its Alta Copper acquisition.
Gold miners bounced despite the precious metal's price coiling tightly to trade at $US5,130 ($A7,258) an ounce, as the All Ordinaries gold sub-industry rose 1.9 per cent.
Critical minerals producers came back strong, with Lynas, PLS and Liontown each up more than three per cent.
Liontown's move came ahead of the lithium miner's interim results due on Wednesday.
Mining chemicals and explosives group Orica shrunk by 2.5 per cent after flagging modest first-half earnings growth.
The heavyweight financials sector jumped 1.8 per cent, tracking with even greater gains from the big four banks.
ASX-listed IT stocks soared 2.8 per cent, following a strong lead from Wall Street's technology-led Nasdaq index overnight.
Health care stocks advanced 2.2 per cent, as CSL jumped on plans to expand its manufacturing operations in the United States.
Telix Pharmaceuticals jumped more than seven per cent on the back of positive test results for a prostate cancer treatment.
Turning to the industrials sector, Air New Zealand suspended its full-year 2026 guidance due to the ongoing Middle East conflict's impact on jet fuel price volatility.
Its shares rebounded 1.2 per cent after dropping almost 15 per cent the previous week.
Shares in local carrier Qantas bounced 1.5 per cent to $8.65, but are still down more than 13 per cent since the US and Israel began bombing Iran.
The ongoing conflict was making it a tough environment for investors, eToro market analyst Josh Gilbert said.
"Volatility is the price of entry right now, and investors who understand that will be far better positioned than those who try to time their way around it," he said.
"This is a market being driven by headlines, those headlines can turn on a dime."
The Australian dollar was buying 70.69 US cents, up from 70.09 US cents on Monday at 5pm, supported by improving risk sentiment.
