Adrian BlackUpdated May 25, 2026 — 5:46pm,first published May 25, 2026 — 5:28amAustralia’s sharemarket has started the week higher, as hopes for a deal to end the US-Iran conflict bolstered investor confidence and pushed oil prices below $US95 a barrel.The S&P/ASX200 rose 35 points on Monday, up 0.4 per cent, to 8692, as the broader All Ordinaries gained 38.2 points, or 0.4 per cent, to 8915.4.Markets are waiting for a breakthrough in the Middle East.APEquities markets across most of Asia made decent gains, as investors leaned into White House claims the US was close to a deal with Iran, despite a lack of material progress.“I am surprised that markets are buying this - we’ve heard this way too many times and it’s never had a foundation in fact so far,” Moomoo market strategist Michael McCarthy said.“That doesn’t mean that it’s definitely not happening, but I would have thought the market would be looking for more than a few offhand comments to really get going, but it was enough today and we saw some good gains across the boards.”Senior US officials said that the US and Iran were nearing a deal, though negotiations over key language were continuing and final approval from both sides could still take several days. Trump wrote on Truth Social that the US will not rush to reach an agreement.The US blockade on Iranian ships on the Strait of Hormuz would “remain in full force and effect until an agreement is reached, certified, and signed,” he wrote.Miners led the charge as the gold sub-index rallied by almost 5 per cent, as the precious metal hovered near $US4,554 ($A6,355) an ounce.Iron ore giants BHP, Rio Tinto and Fortescue all advanced, as Fortescue announced the resignation of Elizabeth Gaines as executive director.Mixed miners, copper and critical minerals producers all broadly improved, except Liontown, which retreated 3.6 per cent to $2.26.Energy stocks were under pressure as Brent crude dropped below $US94.50 a barrel, weighing on Woodside, Santos, and refinery operators Ampol and Viva.Uranium stocks swung in the other direction after recent selling pressure, and coal miners soared after an explosion at a mine in China’s Shanxi province raised supply disruption concerns.The drop in oil prices was good news for Qantas and Virgin, which each soared roughly 6 per cent higher.The rally in Qantas’ shares came despite Airbus flagging yet another delay to deliver the airline’s ultra-long-range Airbus SE A350 to April 2027.Beaten-down consumer cyclicals stocks rebounded 1 per cent on improving investor confidence, in a broad sector move led by a nearly 2 per cent charge in Eagers Automotive.Consumer staples were marginally better than flat, as Coles and A2 Milk dragged on the sector.IT stocks staged a comeback of their own, the sector gaining 1 per cent as WiseTech, Xero and Technology One improved.Financials slipped 0.1 per cent as slumps in Commonwealth Bank, Macquarie and the major insurers weighed, while ANZ, NAB and Westpac edged higher.In company news, Adore Beauty shares rocketed more than 6 per cent higher after a trading update boasted improved revenue in the current financial year.Charter Hall surged 6.7 per cent to $20.62 after it upgraded its 2025 full-year guidance and increased its property funds under management to $74.7 billion, up from $71.7 billion.Guzman y Gomez rose 0.3 per cent. The fast food chain is facing a class action claim in the US for allegedly failing to give workers enough notice when it abruptly shut down its American operations and pulled the pin on its dreams to conquer the world’s biggest fast food market.Chicago-based law firm Haseeb Legal filed the complaint to a US federal trial court in Illinois on Sunday, claiming the Australian-founded burrito maker did not give the mandatory 60 days’ notice after accidentally leaking the news on an internal work platform.The Australian dollar was buying 71.66 cents, up from 71.36 US cents on Friday at 5pm, as improving risk sentiment supported the local currency.On Friday, the split between Wall Street and most US households grew wider as US stocks rose to the finish of their eighth straight winning week, the best such streak since 2023. That’s even though a survey showed US consumers are feeling even worse about the economy.The S&P 500 added 0.4 per cent and pulled closer to its all-time high set in the middle of last week. The Dow Jones rose 294 points, or 0.6 per cent, and the Nasdaq composite gained 0.2 per cent.AAP with AP, Bloomberg, ReutersThe Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.From our partners