After a promising morning rally fueled by optimism over potential diplomatic progress in the Middle East, Australia’s benchmark sharemarket surrendered nearly all its early advances on a choppy day of trading, as investors recalibrated their expectations for a swift resolution to ongoing regional tensions. By the closing bell, the ASX 200 posted only a marginal gain of 7.90 points (0.09%) to settle at 8978.70, while the broader All Ordinaries index fared slightly better, climbing 16 points (0.17%) to 9181.10. The Australian dollar also saw a bump, rising to 71.40 US cents against its American counterpart.Trading across the benchmark’s 11 sectors was deeply mixed, with just five closing in positive territory. The information technology, healthcare and materials sectors led the modest uptick, with standout performers including logistics tech firm WiseTech, which gained 3.63% to reach $39.96, accounting software provider Xero that climbed 2.62% to $75.10, and enterprise tech provider Technology One that rose 2.86% to $28.81. In healthcare, global biotech leader CSL added 0.98% to $139.44, sleep apnea device maker ResMed gained 1.52% to $32.70, and medical imaging technology firm Pro Medicus jumped 4.09% to $137.42.The day’s bullish opening came on the heels of another strong overnight session on Wall Street, which had pushed the ASX 200 as high as 9015.4 points early in the day. Over the prior 10 trading days, both the S&P 500 and tech-focused Nasdaq had notched gains of more than 10% each, driven largely by early hopes that new peace talks between the U.S. and Iran would ease regional conflict. Kyle Rodda, senior financial market analyst at Capital.com, explained that the overnight global equity rally was sparked by falling oil prices tied to news that fresh U.S.-Iran negotiations would move forward as ceasefire talks progressed. Even so, Rodda warned that underlying risks of a renewed escalation of conflict remain largely unaddressed. “Superficially, the markets appear to be holding onto hopes rather than anchoring themselves in reality,” he noted, adding that ongoing blockades in the region continue to disrupt global oil supplies, leaving the global economy in a precarious position.Those underlying risks dragged on investor sentiment through the second half of Australia’s trading session, erasing most of the morning’s gains even amid confirmation that U.S.-Iran talks could resume in Pakistan within 48 hours. Benchmark Brent crude prices reversed earlier falls, rising 0.8% to $US95.58, a development that reinforced investor jitters over energy market volatility.In individual corporate news, several companies posted notable gains on the day. Virgin Australia shares jumped 7.23% to $2.52 after the airline announced it had hedged most of its exposure to rising fuel costs, offsetting projected half-year cost increases of $30 million to $40 million with a planned 1% cut to domestic flight capacity to reduce further expenses. Gold explorer Evolution Mining rallied 9.55% to $14.45 following the release of strong positive drill results from its Mungair and Cowal operations. Agricultural chemical maker Nufarm surged 11.26% to $2.47 after an upbeat trading update forecast underlying earnings before interest, depreciation and amortization between $239 million and $244 million, marking a 17% increase from the prior year. The day’s largest corporate loss came from Telix Pharmaceuticals, whose shares fell 4.21% to $14.80 after the company announced a $US600 million convertible note offering set to mature in 2031.