Australia’s benchmark share index closed at a historic all-time high on Wednesday, powered by strong gains in mining and technology stocks, a sudden drop in global crude oil prices, and bullish momentum carried over from overnight gains on U.S. markets. The S&P/ASX 200 rallied 0.9% to end the trading day at 9227.80, an 82-point jump that pushed the index past its previous February 2025 peak of 9202.90 to claim a new record. The broader All Ordinaries followed suit, climbing 1% to close at 9405.40, a gain of 93.5 points. Against the U.S. dollar, the Australian dollar edged slightly lower to 70.45 U.S. cents by market close.
Despite the overall market hitting a new milestone, only six of the 11 tracked industry sectors finished the day in positive territory, with large-scale mining stocks leading the upward charge. BHP Group saw shares surge 3.34% to settle at $62.54, while Rio Tinto gained 2.29% to close at $176.34, and Fortescue Metals added 0.61% to reach $18.19. Gold miners also posted double-digit and high single-digit gains, lifted by rising global gold commodity prices: Northern Star Resources climbed 5.76% to $21.49, and Evolution Mining rose 6.28% to $12.52.
The catalyst for the day’s market movement came from an unexpected statement by U.S. Treasury Secretary Scott Bessent, who told CNBC that ongoing diplomatic talks with Iran could result in a breakthrough within days to reopen the strategically critical Strait of Hormuz to unobstructed global shipping. “We are in talks with the Iranians,” Bessent said in the interview. “There is a chance we may have a deal today or tomorrow to open the strait and move towards a more normalised position in this conflict.”
The prospect of eased geopolitical tension in the Persian Gulf — one of the world’s most important oil chokepoints — sent global crude prices tumbling, with Brent Crude trading between $76 and $78 U.S. per barrel on Wednesday. Falling oil prices pushed Australian energy stocks down 2% by market close. Gains were also capped by modest losses across the nation’s four largest retail banks: Commonwealth Bank of Australia fell 1.38% to $178.23, National Australia Bank dropped 0.75% to $42.53, Westpac Banking Corporation lost 0.75% to $38.53, and ANZ Group slid 0.42% to $38.01.
Overnight, U.S. benchmarks the S&P 500 and the Dow Jones Industrial Average both closed at record highs, fueled by news of the potential interim peace deal between the U.S. and Iran, which created bullish sentiment that spilled over into Australian trading. Another factor supporting the ASX’s record run is recent volatility in AI-focused global stocks, which has benefited Australian markets due to their limited direct exposure to overinflated AI valuations.
Hugh Lam, investment strategist at Betashares, noted that Australian equities are increasingly seen as a global safe haven for investors seeking to avoid concentration risk in AI-dominated markets. “The local benchmark has reached all-time highs, driven by a rotation into blue-chip assets that has seen recent strength in July as global investors sought refuge in more diversified markets less exposed to AI concentration risk,” Lam explained. “Materials stocks have added further momentum, with Iran-linked supply disruptions keeping commodity risk premiums elevated and copper futures trading near record highs.”
In individual company news, Endeavour Group, the owner of liquor retailer Dan Murphy’s and hospitality chain ALH Hotels, saw shares fall 1.44% to $3.43 after releasing preliminary full-year results that showed underlying net profit dropped to $363 million Australian, down from $426 million the previous year. IperionX recovered 8.95% to $3.41 after a sharp sell-off earlier in the week, following the company’s announcement that it would relocate its parent company headquarters to Texas. Neuren Pharmaceuticals surged 16.28% to $21.64 after reporting that net sales of DAYBUE, its Rett syndrome treatment for adults and children over two years old, rose 30% to $125 million U.S. from the second quarter of 2025. Gaming machine operator Light Wonder gained 3.96% to $118.00 after announcing annual consolidated revenue of $828 million Australian.