Australian shares have rebounded sharply on the latest peace deal proclamation from US President Donald Trump, but risks to the global energy market remain.
The S&P/ASX200 jumped 168.9 points by midday, up 1.96 per cent, to 8,802.1, as the broader All Ordinaries rose 168.4 points, or 1.91 per cent, to 9,005.1.
After an escalation of tit-for-tat attacks between the US and Iran, President Trump backed down on his latest round of threats and claimed the nations were on the verge of signing a peace deal.
Iranian authorities have denied reaching a final decision on the proposal.
"Nevertheless, the cancellation of fresh military strikes and another clear signal that President Trump has apparently very little appetite to escalate the war caused crude prices to drop and gave a fresh boost to risk assets," Capital.com senior market analyst Kyle Rodda said.
