Adrian BlackUpdated May 29, 2026 — 10:39am,first published May 29, 2026 — 5:12amAustralia’s sharemarket has moved higher after a volatile week, supported by hopes of a US-Iran deal and softer than expected local inflation that took some pressure off the Reserve Bank.The S&P/ASX200 gained 138.8 points on Friday, up 1.62 per cent to 8731.7, as the broader All Ordinaries improved by 145.4 points, or 1.65 per cent, to 8965.The S&P/ASX200 ended the week higher.BloombergThe top 200 ended the week 0.86 per cent higher, wrapping up two straight months of modest gains but down more than 5 per cent since the Persian Gulf conflict began on February 28.“Helped along by the reports of a peace deal nearing agreement, global share markets rose over the last week, albeit there were a few gyrations along the way as prospects for a deal looked questionable mid-week in the face of renewed US strikes on Iran,” AMP chief economist Shane Oliver said.“Of course, the deal could still collapse with Iran’s tolling of ships through the Strait a potential sticking point and a cynic might say this just leaves us where things were before the war with no progress on Iran’s nuclear ambitions, so it could all flare up again.”Miners led the charge in a strong closing session after a prospective US-Iran ceasefire extension softened oil prices and boosted investor sentiment following days of escalating attacks.Energy and utilities stocks were the only sectors that finished Friday lower, as Brent crude dropped to six-week lows before hovering about $US91.50 a barrel by 5pm.Raw materials stocks surged 2.9 per cent, supercharged by rebounding gold stocks as the precious metal pushed above $US4518 ($6309) an ounce.Mining giants BHP and Fortescue also clocked gains of more than 2.4 per cent despite oversupply concerns and cooling steel demand from China that weighed on iron ore futures.Copper plays, mixed miners, battery minerals producers and rare earths stocks also rallied as investors adjusted their fuel price expectations.The rosier outlook helped Qantas and Virgin Australia soar more than 3 and 6 per cent respectively, boosting the industrials sector by 1.5 per cent.Financials jumped 1.2 per cent on Friday but still ended the week lower as persistent concerns about already lofty bank valuations, a cooling housing market and high interest rates continued to weigh on the segment.Consumer cyclicals have rocketed more than 4 per cent since Monday, showing signs of a sustained rebound in their third straight week of gains.Real estate stocks were also on the mend, up 2.4 per cent for the week and notching their highest Friday close since early March.Dexus suffered a setback on Friday when the NSW Supreme Court dismissed its attempt to retain at least part of its 27 per cent stake in Australia Pacific Airports Corporation, which owns Melbourne and Launceston airports. Dexus fell 0.3 per cent.Shares in 4DMedical rocketed higher by almost a fifth after the medical technology company secured a new US contract.Next week brings local GDP data for April, US jobs data and European inflation figures.Supported by an upswing in risk sentiment, the Australian dollar was buying US71.64 ¢, up from US71.22¢.Overnight, the S&P 500 added 0.6 per cent to its all-time high set the day before after drifting between small gains and losses in the morning. The Dow Jones Industrial Average rose 24 points, or less than 0.1 per cent, and the Nasdaq composite climbed 0.9 per cent as both indexes also set records.Even with worries about expensive oil and high inflation, the US stock market has run to records largely because US companies keep making more money. Stock prices tend to follow the path of corporate profits over the long term, and companies have been routinely topping analysts’ expectations for the first three months of 2026.Dollar Tree’s stock soared 17.9 per cent after it became the latest to report fatter profit than analysts had expected. Kohl’s rallied 20.6 per cent and Best Buy climbed 15.8 per cent following profit reports that came in better than had been expected.Snowflake rose 36.5 per cent after saying artificial intelligence continued to be a strong driver for its business, and profit and revenue for the latest quarter exceeded expectations.In the bond market, Treasury yields eased after oil prices gave up much of their gains, reducing the upward pressure on inflation.The yield on the 10-year Treasury fell to 4.45 per cent from 4.48 per cent late on Wednesday.AAP with AP, BloombergThe Market Recap newsletter is a wrap of the day’s trading. Get it each weekday afternoon.From our partners