US-Iran war: Oil prices plunge, markets surge, fuelled by hopes of reopening Strait of Hormuz
A tumbling oil price and rally in tech stocks including Google-parent Alphabet on Wall Street set the S&P/ASX 200 up for a positive open on Thursday.
Oil prices tumbled on Thursday morning amid hope that the US and Iran are near a peace deal to end a war that has stoked the biggest energy supply shock in history.
Brent Crude futures sank 6.2 per cent to $US103.09 a barrel, and US WTI oil fell 5.8 per cent to $US96.77 a barrel. While Australian share futures pointed to a 0.8 per cent gain at the opening bell on Thursday.
The Australian dollar also rose to a four-year high after the Reserve Bank lifted benchmark interest rates 25 basis points to 4.35 per cent on Tuesday. On Thursday morning, the dollar bought $US72.4 cents, after hitting a high of $US72.8 cents on Wednesday evening.
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By continuing you agree to our Terms and Privacy Policy.Iran said on Wednesday evening it’s reviewing Washington’s mooted 14-point peace proposal to potentially sign a one-page memorandum of understanding that may see the Strait of Hormuz reopened to shipping.
US President Donald Trump hinted in a Truth Social that an initial deal may be close in a Wednesday night (AEST).
“Assuming Iran agrees to give what has been agreed to, which is, perhaps, a big assumption, the already legendary Epic Fury will be at an end, and the highly effective blockade will allow the Hormuz Strait to be open to all,” Mr Trump wrote.
Wall Street investors cheered the news, as the S&P 500 rose 1.2 per cent to a record 7342 points. The tech-heavy Nasdaq Index climbed 1.3 per cent to a record 25,650 points.
Gold advanced 3.2 per cent to $US4,705 an ounce and silver jumped 5.6 per cent to $US76.70 an ounce. Iron ore prices rose to $US108.58 at their highest level since January, 2026.
Risk bellwether Bitcoin topped $US81,300 for the first time since the conflict began on Thursday morning.
“What continues to stand out is how well Bitcoin has been riding the coattails of risk assets. Its 11.87 per cent gain in April mirrored the S&P 500’s 10.42 per cent advance,” said Tony Sycamore, an IG Market Analyst.
“Further evidence that crypto is behaving more like a high-beta risk asset than a traditional safe haven right now.”
South Korea’s Kospi extends gain to 75pc in 2026
On Wednesday in Asia, South Korea’s Kospi Index closed up 7.6 per cent to extend its breakneck rally to 75 per cent in 2026.
The Asian country’s market has been catapulted higher by high-tech semiconductor and computer hardware manufacturers SK Hynix and Samsung, amid a global investor mania for businesses considered winners from technologies linked to artificial intelligence (AI).
In 2025, the Kospi Index roared 75 per cent higher as foreign investors bought into its market and the AI trade.
In the US, shares in tech giant and Google-parent Alphabet hit a record high of $US398.37 on a $US4.82 trillion valuation as the world’s second most valuable company behind computer chip manufacturer Nvidia.
