ASX 200 Surges 1.3% on US-Iran Peace Deal, June 15

Australia’s stock market posted its best two-session performance since April after the US and Iran agreed to end their war. The S&P/ASX 200 jumped 110 points to 8,914 on Monday, up 1.3%, as oil prices tumbled and investors repriced geopolitical risk. The deal includes a 60-day ceasefire extension and reopening of the Strait of Hormuz within 30 days, removing a major supply bottleneck that has weighed on global growth since February.

Oil Collapse Lifts Miners and Banks

Brent crude fell 4.3% to US$83.54 a barrel on the peace deal, easing inflation concerns that have plagued markets for months. Mining stocks surged as copper climbed toward US$14,000 a tonne on the London Metal Exchange. BHP advanced 3.6% to a record A$65.18, while gold miners rallied sharply. Newmont rose 6.8% to A$147.18 and Regis Resources jumped 13.3% to A$6.63.

Banks also gained on improved economic outlook. Commonwealth Bank climbed 1.4% to A$161.79 and National Australia Bank rose 2.6% to A$37.46. The Australian dollar strengthened 0.5% to 70.81 US cents, buoyed by stronger base metal prices and easing safe-haven demand for the greenback.

Energy Stocks Hammered by Lower Oil

Energy companies fell sharply as investors bet lower oil prices will persist. Santos dropped 8.1% to A$7.42, while Woodside Energy lost 5.7% to A$29.46. Viva Energy fell 5.8% to A$2.12. The sector was the only major drag on the day as oil prices tumbled on Friday night following news of the ceasefire framework.

Two-Month Rally Reflects Geopolitical Relief

The ASX 200 has now gained 3.3% over two sessions, posting its strongest performance since mid-April. Gold futures climbed 2.2% to US$4,310 an ounce as falling oil eased inflation bets and interest rate hike concerns. The index closed at 8,914, its highest level since mid-April. Investors are now waiting for the deal to be formally signed on June 19 in Switzerland to confirm the ceasefire terms.

Final Thoughts

The ASX 200’s 1.3% jump reflects genuine relief from a conflict that has disrupted markets since February. With oil falling sharply and mining stocks rallying, the near-term trend favors cyclical sectors. Investors should watch for the formal signing on June 19 to confirm the deal holds.

FAQs

Disclaimer:

The content shared by Meyka AI PTY LTD is solely for research and informational purposes.  Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.