Iran Deal Nears as Oil Plunges, ASX Set to Rally
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- Oil sank more than 5% in overnight trading, dragging energy giants like Woodside and Santos lower.
- The ASX 200 futures imply a 0.
- 8% gain at the open, driven by financials and tech stocks.
Oil sank more than 5% in overnight trading, dragging energy giants like Woodside and Santos lower. The ASX 200 futures imply a 0. 8% gain at the open, driven by financials and tech stocks.
The deal's terms remain under wraps, but sources confirm Iran would cap enrichment in exchange for sanctions relief. This geopolitical reset threatens Russia's oil market leverage and could realign Middle East alliances. For Australia, cheaper oil means a faster path to taming inflation without aggressive rate hikes.
Markets now price in a 60% probability of an August rate cut, up from 40% last week. Energy stocks face a 2-3% drag today, but the broader market welcomes the macro boost. The ASX's rally hinges on whether the deal holds or collapses into further negotiations.
Power Move: Smart money rotates out of energy and into banks and tech as the Iran deal reshapes global inflation expectations. The RBA's next move depends on oil staying below $70—watch for a rate cut if it does.
This article was edited with AI assistance for readability. Read original here.
