The Australian sharemarket has soared to a two-month high after the US and Iran brokered a peace deal in the Middle East — with the price of oil dropping to a three-month low.

Stocks are set to climb on the prospect of a peace deal and a weaker oil price, but futures suggest a degree of scepticism around the US president’s claims.

The Australian dollar is rising after Donald Trump confirmed a deal has been reached with Iran, saying the Strait of Hormuz will open. Follow the day's events and insights from…