A sharp drop in crude prices has buoyed equity markets, but fears grow of a fresh spike as doubts emerge over a US-Iran peace deal amid clashes in Lebanon.

Iran shut down the Strait of Hormuz after Israeli strikes killed 32 in Lebanon. Oil spiked 2%, US-Iran talks stalled, and crypto toll payments are in focus.

A sharp drop in crude prices has buoyed equity markets, but fears grow of a fresh spike as doubts emerge over a US-Iran peace deal amid clashes in Lebanon.

Futures indicate the ASX will open 0.2 per cent lower; traders brace for oil spike after Iran claims Hormuz closure. Follow live updates here.

Crude oil prices soared past $81 as Iran reportedly closed the Strait of Hormuz following escalating regional conflicts, while Asian stock markets reached record highs.