Stocks surge as Donald Trump says US will leave Iran: Wall Street up, ASX jumps 1.6 per cent
Australian shares have jumped, following a surge on Wall Street after President Donald Trump said the US would be leaving Iran soon, with or without a deal.
Wall Street surged overnight on expectations that the US will end its war on Iran within weeks, even if the Strait of Hormuz remains largely closed.
Australian shares jumped 1.6 per cent in the morning, led higher by a 3.5 per cent gain for the tech sector and a 4.5 per cent gain for the mining sector. The market is seeking to avoid its fifth straight week of losses after Wall Street’s tech-heavy Nasdaq Index rocketed 3.8 per cent and the S&P/500 jumped 2.9 per cent on Tuesday.
“US equity markets soared overnight, with tech stocks leading the charge,” said IG Markets. “The rally was fuelled by fresh signs of de-escalation in the Iran conflict and cooler labour market data, which confirmed this week’s flip in the rates market back toward pricing in Federal Reserve rate cuts in 2026.”
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By continuing you agree to our Terms and Privacy Policy.On Wednesday morning, US President Trump told White House reporters the US will leave Iran “very soon” as it had achieved “regime change” in Iran and ensured it will not obtain a nuclear weapon.
“Overnight, the positive vibes were supported by news that Iran had signalled a conditional willingness to end the war,” said National Australia Bank. “The Wall Street Journal reported that US officials believe a direct mission to reopen Hormuz would extend the conflict beyond President Trump’s desired timeframe, reinforcing the perception that Washington is looking for an exit rather than escalation.”
Benchmark Brent crude futures for settlement in May that expire on March 31 jumped 4.9 per cent to $US118.31 a barrel.
Brent crude futures for settlement in June that expire April 30 traded down 3.6 per cent to $US103.53. Futures pricing out to December 2026 suggests traders expect prices to keep falling as the conflict draws to a hoped for close.
“[Oil] prices pared gains after the Wall Street Journal reported that the Trump administration is considering ending the war even if the Strait of Hormuz remains largely closed,” said ANZ Bank’s commodities strategist Daniel Hynes.
Gold added 0.5 per cent to $US4689 an ounce.
More to come.
