Australian shares rose on Wednesday after US President Donald Trump said the Strait of Hormuz might be reopened as early as Friday.
The S&P/ASX 200 Index gianed 0.54%, or 48.60 points, to close at 8,966.30.
The US and Iran are expected to sign the peace agreement in Switzerland on Friday.
On Wall Street, the Nasdaq Composite fell 1.15%, and the S&P 500 was down 0.57%. Brent crude oil futures fell below $80 per barrel.
On the domestic front, Australia must be ready to manage a financial system that is more prone to shocks, as the currently strained geopolitical environment carries broad implications ranging from the resilience of key payments infrastructure to the fragmentation of cross-border capital flows, Reserve Bank of Australia Assistant Governor Brad Jones said in a speech.
The six-month annualized growth rate in the Westpac-Melbourne Institute Leading Index inched up slightly to negative 0.17% in May from negative 0.18% in April, but remains weak, Westpac said.
In company news, ARN Media (ASX:A1N) reached a binding settlement with Kyle Sandilands, resolving all outstanding legal disputes, including Federal Court proceedings. The agreement requires the company to pay a total of AU$12.1 million, comprising AU$3 million in July and the remainder in monthly installments through June 2029.
Vysarn (ASX:VYS) entered into a binding share sale agreement for the acquisition of NWG Enterprises, which deals in industrial-scale irrigation systems, pumping systems, and ancillary technology, for a total consideration of up to 33 million Vysarn shares and AU$25 million in cash.
Lastly, Symal Group (ASX:SYL) has agreed to acquire Queensland-based defense and resources contractor Shamrock Civil for AU$51 million upfront, alongside up to AU$28.4 million in performance-based earn-outs linked to fiscal year 2026 and fiscal year 2027.