National
ASX Set to Fall as Oil Prices Slide on Iran-US Deal Hopes
Australian shares set to open lower Wednesday as global markets show weakness, with oil prices falling, amid Washington's push for a trade deal between the U.S. and China, which was signed during Donald Trump's…
Australian shares set to open lower Wednesday as global markets show weakness, with oil prices falling, amid Washington's push for a trade deal between the U.S. and China, which was signed during Donald Trump's presidency.
That anticipated drop followed a more than 5% pullback in crude prices overnight which fell to three-month lows early in the morning after reports emerged of a potential ceasefire between the U.S. and Iran that may later lead to an opening of the Strait of Hormuz, which has severely hampered Iranian oil exports.
What Happened
The global markets were mixed up overnight. The S&P 500 fell 0.6% and NASDAQ composite decreased 1.2%. The Dow Jones industrial average was the only US index which positively gained 0.6%.
Mild pressure from middle eastern supply disruption concerns, while anxiety regarding an extended impact on global energy markets, decreased. In Australia, the S&P/ASX 200 index increased up 3.7 points Tuesday to finish the day at 8,917.70
Markets are watching the situation between Iran and the US
Reports of a US and Iran interim deal which may pave the way to reopening the Hormuz Strait and resuming Iranian exports, affect investor sentiment. Being one of the most critical oil trails in the world, any reboot of trade through the Strait of Hormuz will ease supply worries and bring down energy prices.
Investors were also focused on domestic events like a speech from Reserve Bank of Australia Assistant Governor Brad Jones, the Westpac, and Melbourne Institute Leading Economic Index.
Focus: Flight Centre and Nickel Industries
Flight Centre Travel Group reduced its fiscal year 2026 underlying profit before tax guidance to AU$275 million-295 million from AU$310 million-AU$345 million. The ongoing conflict in the Middle East had a very noticeable short-term effect on leisure travel demand, said the company.
At the same time, Nickel Industries issued an operational update on recent performance presenting combined adjusted EBITDA of around $80 million from its operations for April and May.
Source: Yahoo Finance
Follow Inspirepreneur Magazine for daily global business news.