Brent crude rose above $87 a barrel as hopes for a US-Iran peace deal faded. The move pressured Wall Street lower and will split the ASX between energy gains and broader index headwinds.
Oil prices are driving the early call on the ASX this morning, with Brent crude rising above $87 a barrel overnight as hopes for a US-Iran peace deal faded.
That rally is a split story for the local market. ASX-listed energy producers should see their shares open higher. The broader index faces a different headwind: the oil move helped push Wall Street lower, with the Dow and S&P 500 sliding and the Nasdaq down about 0.3%. Traders read the crude spike as an inflation risk that could keep rates higher for longer.
The S&P/ASX200 fell 42 points yesterday, or 0.46%, to 9,073.2. Energy and raw materials were the only sectors that finished in positive territory.
On the corporate front, Reliance Worldwide (ASX: RWC) signed a process deed with Brookfield Capital Partners, which made a $4.1 billion unsolicited bid for all of RWC's shares. The two sides agreed to work toward a scheme implementation deed on terms matching the original proposal.
Macmahon Holdings (ASX: MAH) reported record revenue and underlying earnings for the 2026 financial year. Revenue rose 8% to $2.6 billion, driven by growth in underground mining and civil infrastructure.
In commodities, iron ore slipped 0.23% to $94.95 a tonne in Singapore. Brent crude settled at $87.275, up 2.9%. US natural gas futures fell 1.26% to $2.6987 per gigajoule.
In forex, the Australian dollar bought US$0.710.
The New South Wales government published new guidelines for data centre projects, requiring developers to meet six principles covering environmental performance, additional water and energy supply, and community infrastructure contributions. Projects that comply will get a 75-day assessment commitment.
Overseas, Indonesia plans to launch a mineral and strategic commodities exchange by early 2026, S&P Global reported. The system would bring producers, farmers, exporters, buyers and investors onto a supervised platform with clearer transaction data, according to S&P.
On the resources front, Great Western Exploration (ASX: GTE) struck a deal to earn into the McKinlay copper-gold project in Cloncurry. Adavale Resources (ASX: ADD) reported a wide zone of high-grade gold as it expands the London-Victoria gold resource in New South Wales.
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