The Australian sharemarket declined in early trade after US forces carried out new airstrikes on Iran, with a resolution to the war that began nearly three months ago remaining elusive.

The Australian sharemarket closed in the green while oil prices fell, amid rising hopes of an end to the Middle East conflict.

The Australian sharemarket opened lower after the US military said it carried out “self-defence” strikes in southern Iran, triggering doubts about an imminent end to the war.