The local share market has rebounded as investors clung to hopes the US and Iran might soon return to the negotiating table.
The benchmark S&P/ASX200 index was up 64.3 points, or 0.72 per cent, to a five-week high of 8,990.3 near midday on Tuesday, while the broader All Ordinaries was up 71.2 points, or 0.78 per cent, to 9,184.2.
In Washington, President Donald Trump told reporters outside the White House that Iran had been in touch after peace talks collapsed over the weekend.
"I can tell you we've been called by the other side. They'd like to make a deal very badly," the president claimed.
"We've been called this morning by the right people, the appropriate people."
Wall Street rallied overnight, with the S&P500 rising more than one per cent and essentially wiping out all of its losses since the war began on February 28.
"The markets really want to give peace a chance," said Capital.com analyst Kyle Rodda in a note.
But the risk of more volatility remains high, with oil supplies locked in the Persian Gulf and Gulf state output restricted as the global energy situation continues to degrade.
"That creates urgency in negotiations and fuels significant risks in the global economy," Mr Rodda said.
Seven of the domestic exchange's 11 sectors were higher at midday and three were lower, with consumer staples basically flat.
The tech sector was the biggest winner, rocketing 4.4 per cent, as Nextdc, Wisetech Global and Xero all gained a bit more than five per cent.
In the heavyweight mining sector, BHP was up 2.7 per cent to a six-week high of $55.84, while Rio Tinto had added 1.7 per cent and Fortescue had climbed 1.1 per cent.
Goldminers were mostly lower even as the precious metal changed hands for $US4,792 an ounce, up about $25 from Monday.
Northern Star dipped 0.8 per cent, Evolution slipped 1.6 per cent and Newmont slid 1.4 per cent.
In the financial sector, Westpac had dropped two per cent after signalling its markets division would deliver lower income stemming from the war with Iran.
Among the other big banks, ANZ slipped 0.6 per cent and NAB dipped 0.3 per cent, while CBA rose 0.6 per cent and Macquarie was 3.8 per cent higher.
In the energy sector, uranium developers were posting strong gains, with Deep Yellow, Lotus Resources and Bannerman Energy all climbing by 9.3 per cent, while Peninsula had grown 8.2 per cent and Paladin had added 6.6 per cent.
The successful start-up of a new nuclear reactor in South Korea capable of supplying 1.7 per cent of the country's total power generation may have boosted sentiment.
Woodside and Santos, meanwhile, dropped 0.8 per cent and 0.9 per cent, respectively, as Brent crude slipped back under $US100 a barrel. At midday, it was trading at $97.76.
The Australian dollar was changing hands at 70.83 US cents, from 70.44 US cents at 5pm on Monday.
The Aussie had earlier in the day been as high as 70.93 US cents, a four-week high.
