Australian shares climbed on Tuesday as US President Donald Trump claimed there was a good chance of a nuclear deal with Iran.
The S&P/ASX 200 Index rose 1.17%, or 99.40 points, to close at 8,604.70.
Iran sent a new peace proposal to the US, and President Trump said he had halted a planned attack to allow the negotiations to take place. Brent crude oil futures fell almost 2% to trade around $109 per barrel.
On the domestic front, Australia's near-term underlying inflation has been revised higher due to the oil price shock, adding roughly 0.4 percentage points to underlying inflation by the March quarter 2027, Sarah Hunter, assistant governor at the Reserve Bank of Australia, said during a speech.
The ANZ-Roy Morgan Australian consumer confidence rose 2.3 points to 66.4 in the week of May 11 to May 17. The four-week moving average inched up 0.5 points to 66.4 points.
Australia's consumer confidence edged higher in May, but sentiment remained deeply pessimistic as interest rate hikes and cost-of-living pressures continued to outweigh modest budget-driven improvements, according to a survey by Westpac and the Melbourne Institute. The Westpac-Melbourne Institute Consumer Sentiment Index rose 3.5% to 83 in May from 80.1 in April.
In company news, Mineral Resources (ASX: MIN) said that it would restart operations at its Bald Hill lithium mine in Western Australia, citing a sustained recovery in lithium prices and improved market conditions. The mine, which was previously placed on care and maintenance in November 2024. Its shares were up over 2% on market close.
Technology One (ASX:TNE) reported fiscal first-half earnings of AU$0.2028 per share, up from AU$0.1908 a year earlier. Revenue for the six months ended March 31 was AU$322.7 million, compared with AU$291.3 million a year earlier. Its shares fell 2% on market close.
Lastly, Northern Minerals (ASX:NTU) said it welcomes the Australian Treasurer's disposal orders related to around 1.68 billion shares held by six foreign shareholders. The Treasurer ordered the foreign shareholders, which include Hong Kong Ying Tak, Real International Resources, Qogir Trading & Service, Chanoyu Cong, Vastness Investment Group, and Zhongxiong Lin, to divest part or all of their holdings in Northern Minerals by July 2. Its shares jumped 26% on market close.