Australia's share market is trading lower on reports the United States has struck targets in southern Iran, rattling hopes of an imminent peace deal.
The S&P/ASX200 fell 37.7 points on Tuesday, down 0.43 per cent, to 8,654.3, as the broader All Ordinaries dropped 39.5 points, or 0.44 per cent, to 8,875.
The slump followed a relief rally on Monday following reports the US and Iran were closing in on an agreement to end hostilities and open the Strait of Hormuz.
"Nerves are set to be tested by fresh reports of explosions and blasts near Bandar Abbas — the critical gateway to the (Hormuz) strait — and other southern coastal areas, where US fighter jets appear to have targeted IRGC speedboats," IG market analyst Tony Sycamore said.
