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.

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.