Australia’s sharemarket is poised to surge on the opening bell and the price of oil has fallen to a two-month low after US President Donald Trump declared a “great settlement” between Washington and Tehran. ASX 200 futures were up 142 points or 1.64 per cent to 8798.5 just before the sharemarket officially opened. At the same time, Brent Crude oil fell below $US89 ($A126) a barrel for the first time in two months and gold rallied above $US4200 ($A5962) an ounce. Australia’s dollar rallied 0.78 per cent against the greenback to buy 70.48 US cents. The sensational rally followed Mr Trump’s announcement that Washington and Tehran were on the verge of a peace deal, as he cancelled further strikes on Iran. “We just made a great settlement of the war with Iran, and we’re going to be subject to finalisation of documents, which should get done over the next few days,” Mr Trump said at the White House on Thursday local time.Capital.com senior financial market analyst Kyle Rodda said global markets including Australia had rallied thanks to Mr Trump’s backdown.“In what looks like a fresh ‘TACO’ (Trump always chickens out), US President Trump has claimed that the US and Iran have approved ‘discussions and final points’ of a peace deal, backflipping on threats made earlier in the day to launch another round of strikes against the regime,” he said.Despite the market’s excitement, Mr Rodda pointed out that both Iran and Israel almost immediately slapped down the Mr Trump’s claim. Iran foreign ministry spokesman Esmaeil Baqaei said “so far, Iran has not reached a final conclusion on the agreement”.“Nevertheless, the cancellation of fresh military strikes and another clear signal that President Trump has apparently very little appetite to escalate the war caused crude prices to drop and gave a fresh boost to risk asset,” Mr Rodda said.More to comeRead related topics:ASXDonald Trump