Australian shares extend rally as Iran de-escalation lifts risk appetite

Banks outperform miners and energy stocks as the S&P/ASX 200 climbs 0.3% to 9,050, building on a broad-based advance triggered by the cancellation of planned US military strikes.

By Handelsavisen Newsroom · Automated 2026-08-04 07:26 UTC · 1 min read

Australian equities continued their upward trajectory on Tuesday, with the S&P/ASX 200 index rising 0.3% to close at 9,050.40.

The session was characterized by a rotation into financials, which posted strong gains, while the mining and energy sectors lagged, weighing on the broader index performance.

The market move reflects a sustained improvement in global risk appetite following the sudden de-escalation of geopolitical tensions in the Middle East.

Investors are responding positively to the reversal of US President Donald Trump’s plans for further military strikes on Iran, a development that has significantly reduced uncertainty around energy supply chains and regional stability.

This session’s gains build on a previous broad-based rally, where the index had climbed 0.7% to 8,823.40.

Financials and technology stocks have been the primary beneficiaries of the renewed investor confidence, as lower geopolitical risk premiums support higher valuations for cyclical and growth-oriented assets.