Index Update: The S&P/ASX 200 rose 110.0 points, or 1.25%, to close at 8,914.0 on Monday, marking a fresh 20-day high. The benchmark has gained 3.35% over the past five sessions and now sits 3.14% below its 52-week peak.

Sector performance was mixed, with six of 11 sectors finishing higher. Materials led the market, surging 4.06%, followed by A-REITs (+1.52%), Financials (+1.11%), and Information Technology (+1.05%). Energy was the weakest sector, falling 5.58% as oil prices retreated.

The Australian market climbed to its highest level in two months after reports of an interim agreement between the US and Iran to ease tensions and reopen the Strait of Hormuz. The resulting decline in oil prices helped ease inflation concerns and boosted investor sentiment.

Macro Update: The United States and Iran have announced a preliminary agreement aimed at ending regional hostilities and reopening the Strait of Hormuz, with the deal expected to be signed in Switzerland on Friday.

While the agreement signals a potential easing of tensions, details remain limited, particularly regarding Iran’s nuclear programme. Iran’s Mehr news agency reported that the proposed memorandum includes the release of frozen Iranian assets, with up to US$24 billion potentially becoming available during a 60-day negotiation period.

The development has raised expectations of improved stability in global energy markets and reduced risks to oil supplies.

Top Market Movers: Among the top gainers on Monday, Ora Banda Mining Ltd (ASX:OBM) surged 16.29% to close at AUD 1.285, followed by Vault Minerals Limited (ASX:VAU), which climbed 14.71% to AUD 4.60. Regis Resources Limited (ASX:RRL) also posted a strong gain, rising 13.33% to AUD 6.63. On the downside, Santos Limited (ASX:STO) led the decliners, falling 8.43% to AUD 7.39, while Karoon Energy Ltd (ASX:KAR) dropped 8.38% to AUD 1.86. New Hope Corporation Limited (ASX:NHC) rounded out the top losers, declining 7.95% to AUD 5.56.

Commodity Update: The U.S. dollar weakened to a 10-day low against major currencies after reports that the United States and Iran agreed on a framework aimed at ending hostilities and reopening the Strait of Hormuz. The development pressured crude oil prices, with Brent crude falling to USD 83.82 per barrel. Precious and industrial metals advanced, with gold rising 2.59% to USD 4,348.75, silver climbing 3.70% to USD 70.52, and copper gaining 1.05% to USD 13,848.10.

Our Stance: The Australian share market extended its rally on Monday, with the S&P/ASX 200 climbing 1.25% to a fresh 20-day high as easing geopolitical tensions boosted investor confidence. Reports of a preliminary agreement between the United States and Iran to end regional hostilities and reopen the Strait of Hormuz sent oil prices sharply lower, helping ease inflation concerns and lifting risk appetite. Materials stocks led gains, while energy names came under pressure as Brent crude retreated. Gold, silver and copper prices advanced, supporting resource-sector sentiment, with Ora Banda Mining (ASX:OBM), Vault Minerals (ASX:VAU) and Regis Resources (ASX:RRL) among the standout performers. While markets have welcomed the apparent de-escalation, investors are likely to remain focused on the final terms of the agreement and developments surrounding Iran’s nuclear programme.

The S&P/ASX 200 advanced by 110.00 points in the latest trading session, forming a bullish candlestick pattern that signals strengthening market sentiment and growing investor confidence. From a technical standpoint, the index continues to trade comfortably above its 21-day Simple Moving Average (SMA), which is acting as a key dynamic support level and reinforcing the prevailing upward trend. Immediate support is situated near 8,820.50, and sustained trading above this level could help preserve bullish momentum and provide a foundation for further gains. With the technical structure remaining constructive, the index appears well-positioned to build on recent strength, particularly if supported by favourable economic developments and continued risk appetite among investors.