The Australian sharemarket trod water as investors paused to assess the durability of the relief rally fuelled by the US-Iran deal to reopen the Strait of Hormuz.

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.

The Australian sharemarket trod water as investors paused to assess the durability of the relief rally fuelled by the US-Iran deal to reopen the Strait of Hormuz.