5pm: ASX rebounds but loses momentum
The S&P/ASX 200 Index closed 13.50 points, or 0.2% higher, at 8379.40 on Tuesday, rebounding from a 10-month low in the previous session but finishing well below its intraday peak of 8504.60.
Early gains faded as US futures reversed course and oil prices surged above $US100 a barrel. The move followed a Wall Street Journal report that US allies in the Persian Gulf are edging closer to active involvement in the conflict, aiming to reinforce deterrence around the Strait of Hormuz.
BHP leadership shift and Slattery warns on investment competitiveness
Highly regarded BHP executive Geraldine Slattery has drawn a contrast between Australia’s sporting success and its declining appeal as a mining investment destination, as speculation grows over her next career move.
BHP last week appointed its president of Americas, Brandon Craig, to succeed Mike Henry as chief executive, passing over Slattery in what would have been a historic first female appointment at the 141-year-old company. Chairman Ross McEwan has since acknowledged that some overlooked internal candidates may depart.
Speaking at a Minerals Council of Australia conference in Canberra on Tuesday, Slattery referenced Olympic champion Cathy Freeman and tennis great Ash Barty to underscore her point on competitiveness.
“Large, long-life resource projects compete globally for funding. Investors compare jurisdictions on risk, returns and the ability to execute,” she said.
“A recent study commissioned by the Business Council of Australia ranked Australia 21st out of 42 countries in 2025, down from 17th in 2019.
3.30pm: ASX pares early gains as oil jumps
The S&P/ASX 200 was up 26.60 points, or 0.3%, to 8392.50 at 2.03pm AEDT after earlier climbing more than 100 points to an intraday peak of 8504.60.
The market gave back much of its early advance after US futures turned lower and oil climbed above $US100 a barrel. The move followed a Wall Street Journal report that US allies in the Persian Gulf were edging closer to active involvement, with Saudi Crown Prince Mohammed bin Salman said to be keen to re-establish deterrence around the Strait of Hormuz.
Brett Blundy lifts Lovisa stake
Meanwhile, retail billionaire Brett Blundy has spent more than $12 million in recent days increasing his stake in ASX-listed online fashion jewellery group Lovisa Holdings to 39.6% in his first on-market purchases in more than a decade.
A substantial shareholder notice lodged on Tuesday for the company he founded and chairs showed Blundy now controls 43.8 million shares. That follows a $5.3 million purchase of 263,000 shares on Friday, after he spent $6.8 million buying 332,000 shares on Monday last week.
Blundy, ranked 47th on Australia’s Richest 250 list, had not bought Lovisa shares on market since December 2014.
Lovisa non-executive director Bruce Carter has also been buying stock this month for the first time since December 2022, spending about $948,000 on 45,000 shares.
Lovisa shares were down 1% to $20.82, leaving the stock about 29% below where it began the year.
The company, led by chief executive John Cheston, the former Smiggle boss, suffered a first strike from investors at its annual meeting in November, marking its fifth consecutive protest vote against executive remuneration.
12.25: ASX trims early rally
A strong intraday rebound in Australian equities lost momentum as investors weighed conflicting signals over the Middle East conflict, after oil prices climbed above $US100 and mixed messaging emerged around peace talks between the US and Iran.
The S&P/ASX 200 Index was up 24.30 points, or 0.3%, to 8390.20 at 12.12pm AEDT after earlier jumping more than 100 points to an intraday high of 8504.60. The market eased back as US futures turned lower.
Prime Minister Anthony Albanese meanwhile announced the signing of a free trade agreement with the European Union.
“This is a significant moment for our nation as we secure an agreement with the world’s second-largest economy, the Australia-European Free Trade Agreement will lower trade and investment barriers between Australia and the EU, a market of around 450 million people,” Albanese said at a press conference in Canberra.
“This agreement is worth $10 billion to the Australian economy on an annual basis. Our relationship with Europe is grounded in our shared belief in democratic values, in human rights and in inclusive societies.”
He described the agreement as a win-win.
“It eliminates tariffs on key Australian exports, including wine, seafood and horticulture, and it means our high-quality Australian produce, including beef, sheep meat, dairy, rice and sugar, will have access to consumers in the European market,” he said.
“This benefits Australian consumers and companies too, with greater choice in goods and services at lower prices, including important inputs for our manufacturing and primary industry sectors.”
11.14am: ASX rallies and gold steadies
The sharemarket rebounded from a 10-month low on Tuesday after US President Donald Trump delayed threatened strikes on Iranian energy infrastructure, citing talks with Tehran and lifting hopes of de-escalation in the Middle East.
The S&P/ASX 200 rose 1.3%, or 109.60 points, to 8475.50 by 10.12am AEDT, clawing back part of the roughly $300 billion wiped from market value since the Iran conflict began on February 28.
Gold steadied after a volatile start to the week as investors assessed Trump’s decision to postpone strikes on Iran’s energy assets. Bullion held above $US4400 an ounce in early trade after recovering from sharp losses on Monday to finish that session down nearly 2%.
The Middle East conflict has kept energy prices elevated and increased concerns around inflation and higher interest rates, contributing to a nine-day slide in gold prices, its longest losing streak since 2023.
US stocks rose on Monday, while Treasury yields and the US dollar eased after Trump announced a five-day delay to the strikes he had previously threatened and said “productive discussions” had taken place with Iran. Tehran, however, denied any talks with Washington. Oil prices were steadier after tumbling 10% in the previous session.
Even with the pause, uncertainty remains around any negotiations and the safe passage of ships through the Strait of Hormuz. Damage already inflicted on energy infrastructure is also expected to take time to repair.
That has kept inflation risks in focus and reinforced expectations that the US Federal Reserve and other central banks could keep rates higher for longer, which is typically a negative for non-yielding assets such as gold.
Gold’s decline over more than three weeks of conflict has also been partly attributed to a dash for cash, with investors selling relatively liquid and profitable gold positions to cover broader market losses.
Spot gold was last up 0.5% at $US4427.76 an ounce.
9.30am: ASX set to open higher
Australian shares are set to open sharply higher after easing geopolitical tensions in the Middle East buoyed global markets overnight, although gains have moderated following conflicting signals from Washington and Tehran.
ASX 200 futures were up 151 points, or 1.8%, to 8567 at 7.20am AEDT, trimming earlier gains of more than 2%. On Wall Street, the S&P 500 closed 1.2% higher, also paring late-session gains, with consumer discretionary stocks leading all 11 sectors.
Oil prices led the market reaction, initially plunging as much as 14% before settling lower. Brent crude was down 11% to below US$100 a barrel by late afternoon. Gold briefly slipped below US$4400 an ounce, while broader risk sentiment improved, pushing bond yields lower.
National Australia Bank chief economist Sally Auld said markets “took the good news at face value”, pointing to falling oil prices, rising equities and easing yields as investors responded to signs of de-escalation.
However, gains faded as uncertainty remained around the underlying geopolitical situation, with the Strait of Hormuz still effectively closed despite reports of some vessels exiting the Persian Gulf.
Trump signals talks, Iran pushes back
Market optimism was initially driven by comments from US President Donald Trump, who said the US and Iran had held “productive talks” aimed at ending hostilities.
In a social media post, Trump said both sides were keen to “make a deal” and that there were already “major points of agreement”. He also flagged a desire to increase oil supply, stating prices would “drop like a rock” if a deal is reached.
The comments suggested a shift away from earlier threats to strike Iranian energy infrastructure, helping ease immediate fears of supply disruption.
However, Iran quickly disputed the claims. The country’s parliamentary speaker said on X that “no negotiations have been held with the US”, accusing Washington of spreading “fake news” to influence financial and oil markets.
Despite the denial, Trump reiterated his position in subsequent remarks to reporters, maintaining that discussions had taken place.
The conflicting narratives injected volatility into markets, with earlier gains in equities and sharp declines in oil prices partially reversing.
Auld noted that while the tone had shifted towards potential diplomacy, mixed signals persisted, with other leaders, including UK Prime Minister Keir Starmer, indicating talks may be underway.
Edward Jones analyst Brock Weimer said a clearer signal of de-escalation would be the resumption of crude flows through the Strait of Hormuz.
“Headlines remain fluid, and market volatility could persist in the days and weeks ahead,” he said.
While near-term oil prices have eased on hopes of reduced disruption, longer-dated Brent contracts remain elevated, reflecting ongoing uncertainty around Iran’s conditions for de-escalation and the broader geopolitical outlook.