AAP Finance

Local shares defy geopolitical tensions to edge higher

Mar 31, 2026

ASX graphic — Seven of the ASX-200's 11 sectors were up at midday, with a 1.7 per cent rise in technology stocks. -AAP Image

The Australian share market has pared back earlier losses to coast higher at midday despite elevated oil prices and reinvigorated threats to destroy Iranian energy infrastructure.

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The S&P/ASX200 was up 26.7 points, or 0.32 per cent, to 8487.7 by midday AEST on Tuesday as the broader All Ordinaries gained 25.1 points, or 0.29 per cent, to 8682.6.

Conflicting messaging from the White House kept investors cautious in overseas markets, with US President Donald Trump expressing willingness to negotiate with Iran while also reviving warnings energy plants and Kharg Island could become targets if the Strait of Hormuz remains closed.

US Federal Reserve Chair Jerome Powell confirmed a wait-and-see approach to higher oil prices in public remarks, signalling the temporary influence of energy supply shocks on the economy and inflation.

In Australia, investors are digesting the minutes from the last cash rate decision when a 0.25 percentage-point hike was deemed necessary by a slim majority of board members due to inflationary pressures.

The Reserve Bank of Australia has also banned credit and debit card surcharges despite concerns voiced by banks and small firms.

The Fair Work Commission's decision to scrap junior pay rates is also expected to add to operating costs for retail and fast-food businesses.

Moomoo market strategist Michael McCarthy said resources names with oil exposure might offer some insulation for the local market.Â

"But until there is meaningful progress on the Iran situation, the path of least resistance for broader markets remains lower," he said.

At lunchtime, seven of the ASX-200's 11 sectors were higher, led by a 1.7 per cent rise in technology stocks.

Energy companies continue to trade higher amid rising prices and geopolitical uncertainty, with Brent crude hovering mostly above US$100 a barrel.

Mining stocks were down 0.2 per cent as the outlook for Chinese demand for iron ore and coal cools.

Financials were higher despite tightened surcharge regulation, with CBA up 0.4 per cent to $169.45, NAB down 0.3 per cent to $41.13, Westpac 0.9 per cent higher at $39.44, and ANZ flat at $35.89.

The Australian dollar is buying 68.57 US cents, slightly down from 68.69 US cents on Monday at 5pm.