Australian stocks today: Iran ceasefire drives ASX200 up 2.8pc to four-week high

Donald Trump’s backdown on threats against Iran — including that a “whole civilization will die tonight, never to be brought back” — have lit a fire under Australian stocks as investors bet a two-week ceasefire may hold and bring peace in the Middle East.

The S&P-ASX200 soared 2.8 per cent in the opening minutes to a more than four-week high of 8968.9 points.

It later pulled back slightly to be up 2.5 per cent to 8946.7 — still up 217.2 points.

Investors have been left shellshocked after six weeks of war that drove the index from a record high of 9200.9 on March 2 to correction territory as the US and Israel stepped up their bombardment of Iran, which retaliated by closing the Strait of Hormuz and chocking off oil supply to global markets.

Wednesday morning’s stunning rally followed a mixed result for Wall Street overnight amid signs of progress in negotiations as the minutes ticked down to Mr Trump’s deadline for Iran to open the strait or face ‘hell’ as he threatened to target the country’s power plants and bridges.

The President later revealed he was suspending the bombing campaign for two weeks if the waterway — which handles 20 per cent of global oil supply — was immediately reopened.

“Based on conversations with Prime Minister Shehbaz Sharif and Field Marshal Asim Munir, of Pakistan, and wherein they requested that I hold off the destructive force being sent tonight to Iran, and subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz, I agree to suspend the bombing and attack of Iran for a period of two weeks,” Mr Trump wrote on Truth Social.

“This will be a double sided CEASEFIRE!”

“The reason for doing so is that we have already met and exceeded all Military objectives, and are very far along with a definitive Agreement concerning Longterm PEACE with Iran, and PEACE in the Middle East.”

Iran’s Foreign Minister Seyed Abbas Araghchi confirmed safe passage would be provided, with co-ordination from the Iranian Navy.

“On behalf of the Islamic Republic of Iran, I express gratitude and appreciation for my dear brothers HE Prime Minister of Pakistan Sharif and HE Field Marshal Munir for their tireless efforts to end the war in the region,” he said.

“If attacks against Iran are halted, our Powerful Armed Forces will cease their defensive operations.

“For a period of two weeks, safe passage through the Strait of Hormuz will be possible via co-ordination with Iran’s Armed Forces and with due consideration of technical limitations.”

The news saw West Texas Intermediate tumbled as much as 17 per cent to under $US100 a barrel. Brent crude oil futures tumbled 6 per cent to $US102.61.

Soaring prices have left countries, including Australia, scrambling to secure more supplies as petrol and diesel prices skyrocketed at the bowser and fuelled fears about higher inflation and interest rates.

Six of the S&P-ASX200’s 11 sectors were in the green, led by a surge in utility, banking, consumer staple and energy stocks.

Gold miners Bellevue Gold, Greatland Resources and Ora Bana Mining were among the top-five best performers in early trade.

DroneShield has hammered 17 per cent lower after it revealed its CEO and chair would both exit the defence business following stock sales that have decimated the company’s stock price.

More to come.