The Australian sharemarket advanced in early trade after Wall Street waded back into makers of computer chips and other winners of the artificial-intelligence boom, shrugging off another jump in oil prices amid the hostilities in the Middle East.

The Australian sharemarket has made a positive start to the week while oil prices have climbed after tensions escalated in the Middle East.

The Australian sharemarket trod water on Monday, with energy stocks following oil prices higher and tech firms losing more ground.