2 hours ago
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Stan Choe
Updated June 15, 2026 — 8:12am,first published 5:28am
The Australian sharemarket is set to jump after Donald Trump announced a peace deal that includes an immediate ceasefire “on all fronts” of the war in the Middle East.
ASX futures are pointing to a gain of 39 points, or 0.4 per cent, at the open, but they were set before Trump’s announcement, which comes after a series of clashes almost derailed the agreement. Oil prices are expected to fall sharply when Asian trading resumes this morning.
Trump confirmed the outcome soon after a key negotiator in the talks, Pakistani Prime Minister Shehbaz Sharif, formally announced the agreement.
Trump confirmed the deal with a statement on social media declaring the Strait of Hormuz would be open.
“The Deal with the Islamic Republic of Iran is now complete. Congratulations to all!” he said on social media early on Sunday evening in Washington (about 7.30am on Monday, AEST).
“I hereby fully authorise the toll free opening of the Strait of Hormuz, and, simultaneously herewith, authorise the immediate removal of the United States Naval blockade. Ships of the World, start your engines. Let the oil flow!”
Trump is set to formally sign the deal this week, Pakistan’s prime minister said.
“Both sides have declared the immediate and permanent termination of military operations on all fronts, including in Lebanon,” Sharif said in a statement, saying the signing ceremony would be held this Friday in Switzerland.
On Friday , the S&P 500 added 0.5 per cent to close out its 10th winning week in the last 11. The Dow Jones Industrial Average climbed 353 points, or 0.7 per cent, and the Nasdaq composite gained 0.3 per cent.
The bigger factor for Wall Street over the last week has actually been artificial-intelligence stocks, and how they have gone from roaring to records to suddenly turning lower. The concern is whether such stocks shot too high, too fast because of AI mania, and their careening moves have sometimes reversed direction by the hour.
SpaceX suggested plenty of demand still exists among investors for AI after its stock leaped 19.2 per cent in its first day of trading. That gave Elon Musk’s rocket company a total value of $US2.1 trillion ($3 trillion), making it bigger than Exxon Mobil, Bank of America and Coca-Cola combined. In addition to building rockets, SpaceX also owns the artificial intelligence company xAI.
AI-related stocks were otherwise mixed following their roller-coaster moves over the last week. Micron Technology’s drop of 1.4 per cent was one of the heaviest weights on the S&P 500, but CoreWeave jumped 5 per cent after learning it will join the Nasdaq 100 index later this month.
Elsewhere on Wall Street, Adobe dropped 6.8 per cent despite reporting stronger profit and revenue for the latest quarter than analysts expected.
Its stock has lost nearly 42 per cent so far this year, and it announced its chief financial officer is leaving the company on Monday. Adobe is already looking for a CEO to replace Shantanu Narayen, who announced in March that he is stepping aside after 18 years as Adobe’s leader.
In the bond market, Treasury yields rose to regain some of their sharp slide from the day before, when oil prices dropped following Trump’s announcement. The yield on the 10-year Treasury climbed to 4.48 per cent from 4.45 per cent late on Thursday.
High yields can slow entire economies and undercut prices for all kinds of investments, including stocks and cryptocurrencies. They hit investments seen as the most expensive in particular, and some critics are calling the AI industry a bubble where investment inflated too far.
Yields got a boost after a report suggested sentiment among US consumers is not as bad as economists feared. The preliminary survey from the University of Michigan said sentiment improved by more than expected. US consumers said they were feeling some relief after gasoline prices eased a bit early in the month.
