Australia's share market has notched its best two-session performance since April following reports the US and Iran have agreed on the terms of a peace deal.
The S&P/ASX200 jumped 110 points on Monday, up 1.25 per cent, to 8,914, as the broader All Ordinaries gained 121.9 points, or 1.35 per cent, to 9,128.
The memorandum of understanding - expected to be signed by US and Iranian officials in Switzerland on Friday - reportedly includes a 60-day ceasefire extension, the Hormuz Strait reopened within 30 days, and commitments to discuss Iranian sanctions and frozen funds.
Oil prices slumped to 14-week lows, launching most cyclical sectors higher as investors repriced the Persian Gulf conflict's likely global economic impact.
"With oil prices retreating by five per cent and fears of a prolonged energy shock easing, Australian energy stocks bore the brunt of the reversal," Global X senior product and investment strategist Marc Jocum said.
