Australia's share market has rallied after the US and Iran agreed to a two-week ceasefire, during which crude oil and gas tankers will be able to transit the Strait of Hormuz.
The S&P/ASX200 added 215.9 points by midday on Wednesday, to be up 2.47 per cent, to 8,944.7, as the broader All Ordinaries gained 231.3 points, or 2.59 per cent, to 9,152.5.
The agreement hinged on the temporary reopening of the Strait - a thoroughfare for about one-fifth of global oil shipments - after President Donald Trump warned Iran "a whole civilisation will die" if his demands were not met by 10am AEST.
Oil prices sank to the lowest levels since March 12, with both Brent and West Texas benchmarks falling below $US100 a barrel, down more than 20 per cent from recent peaks.
The pause in fighting will help provide a platform for peace talks, likely to be held in Pakistan.
"While a two-week opening of the Strait would only allow for a modest resumption of global oil flows, it would be a highly welcome development if it ultimately paves the way for a broader, permanent reopening," IG market analyst Tony Sycamore said.
ASX-listed oil, gas and coal producers sold off sharply, stripping the energy sector of almost eight per cent of its value.
Woodside dropped by more than a tenth to $32.23 per share, although it's still up by almost 13 per cent since the conflict began on February 28.
Ampol and Viva Energy, the operators of Australia's two remaining oil refineries, eased 4.8 per cent and 9.8 per cent respectively from their March rallies.
Utilities also sold off, with the sector dropping 4.4 per cent as Origin, APA Group and AGL slumped.
The ceasefire was music to the ears of airline investors, as Qantas and Virgin Australia shares soared by 8.7 per cent and 13.5 per cent, respectively.
Virgin has been hit harder by air travel disruptions in the Middle East, as it has direct services to the region.
The raw materials sector rocketed more than four per cent higher to its strongest level since March 6, with gold producers leading the charge as the precious metal rose to $US4,798 ($A6,786).
Bellevue Gold outperformed the top-200, soaring more than 16 per cent after achieving record free cash flow from improved ore grades.
Mega miners BHP and Rio Tinto each bolted more than 3.8 per cent higher, as iron ore futures held steady near $US107.70.
The heavyweight financials sector also lifted the bourse up 2.8 per cent, with NAB leading the big four banks into the green.
The ceasefire also supported the consumer discretionary sector, which rose 3.9 per cent after being hammered recently by heightened inflation expectations and dwindling consumer confidence.
IT stocks surged almost six per cent higher on the rosier global growth outlook, after falling to more than three-year lows the previous week.
Health care stocks were broadly higher, with Pro Medicus barrelling ahead with a 7.3 per cent advance after inking a five-year, $23 million contract with a US university medial group.
In company news, Zip Co jumped more than 15 per cent higher after Bank of America Merrill Lynch increased its stake in the buy now, pay later player to more than five per cent.
Droneshield shares tanked more than 13 per cent to $3.44 after chief executive and managing director Oleg Vornik resigned, with chair Peter James also announcing plans to depart in May.
DroneShield’s chief product officer Angus Bean will succeed Mr Vornik in the top job, effective immediately.
The Australian dollar was higher, buying 70.68 US cents, from 69.19 US cents on Tuesday at 5pm.
