The Australian sharemarket declined on Thursday as fresh US strikes on Iran cast doubt on the chances of a deal to reopen the Strait of Hormuz.

The Australian sharemarket opened sharply lower on Tuesday as local investors caught up with Wall Street’s sell-off on Friday and a flare-up of fighting between Israel and Iran.

The Australian sharemarket is higher despite a new escalation in the Middle East after US forces struck Iran and a sell-down on Wall Street.