ASX Stalls as Oil Prices Plunge Amid Hopes for Iran Talks

The Australian sharemarket is expected to open marginally lower on Tuesday, following a strong performance from Wall Street. ASX futures point to a one-point decline after local stocks pushed above 9,000 and Wall Street began August with gains.

Investors will continue to assess developments in the conflict between the United States and Iran, with hopes of diplomatic talks pushing oil prices sharply lower but conflicting reports from Tehran maintaining uncertainty. Lower oil prices are likely to weigh on energy producers, although the retreat in crude could provide support to consumer, transport, and industrial stocks by easing concerns about inflation and operating costs.

Australian shares recovered from a weak opening to finish Monday firmly higher as falling oil prices raised hopes that the US and Iran could move towards de-escalating their conflict. The S&P/ASX 200 climbed 42.5 points, or 0.47%, to 9,019.3, while the broader All Ordinaries advanced 41.4 points, or 0.45%, to 9,178.4.