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The Markets Brief – May 26, 2026

May 26, 2026

The Markets Brief

ASX Pre-Market · 7:30am AEST

Opening Note

The ASX closed Monday at 8,692.0 (+0.40%), and Wall Street extended gains overnight with the S&P 500 at 7,473.5 (+0.37%), the Dow at 50,579.7 (+0.58%), and the Nasdaq at 26,344.0 (+0.19%), pointing to a steady open for Australian equities Tuesday. The dominant overnight driver was falling oil — WTI dropped 0.88% to $96.60 on reports of a potential US-Iran peace deal and possible reopening of the Strait of Hormuz — a development with direct read-through to ASX energy and consumer-facing stocks.

The Iran peace deal narrative is the dominant macro theme today. Oil falling below $100/barrel on ceasefire optimism triggered Monday's sharp divergence across the ASX: energy names Woodside (-4.24% to $30.74), Santos (-3.64% to $7.94), and Ampol (-4.20% to $33.95) sold off hard on lower oil prices, while Qantas surged 5.76% to $9.18 as lower fuel costs directly benefit airline margins. The AUD/USD rose 0.39% to 0.7157, reflecting broader risk appetite.

Watch Whitehaven Coal (WHC), which surged 8.70% to $8.87 Monday — a move that warrants scrutiny given coal price direction and any supply-side read-through from Middle East stability. Woodside and Santos remain in focus as the Iran deal narrative develops, with any confirmation of a formal agreement likely to extend pressure on both stocks at open.


Markets at a Glance

Indices

ASX 200 8,692.0 ▲ +0.40%
S&P 500 7,473.5 ▲ +0.37%
Dow Jones 50,579.7 ▲ +0.58%
Nasdaq 26,344.0 ▲ +0.19%

FX

AUD/USD 0.7157 ▲ +0.39%
AUD/GBP 0.5308 ▲ +0.12%
AUD/EUR 0.6147 ▲ +0.10%
AUD/JPY 113.9010 ▲ +0.40%

Rates

US 10Y 4.56% ▼ -0.61%

Commodities

Gold $4,523.20 ▼ -0.15%
WTI Oil $96.60 ▼ -0.88%
Copper $6.38 ▲ +0.24%

Crypto

Bitcoin $77,239 ▲ +0.36%

ASX Market Movers · Previous Session

▲ Top Gainers

WHC

Whitehaven Coal

$8.87 ▲ +8.70%

QAN

Qantas

$9.18 ▲ +5.76%

NEM

Newmont

$158.40 ▲ +5.06%

MIN

Mineral Resources

$71.53 ▲ +2.68%

TWE

Treasury Wine

$4.61 ▲ +2.44%

AMC

Amcor

$54.95 ▲ +2.37%

SGP

Stockland

$4.05 ▲ +2.02%

TNE

Technology One

$30.04 ▲ +1.83%

▼ Top Losers

SEK

Seek

$12.08 ▼ -4.96%

WDS

Woodside

$30.74 ▼ -4.24%

ALD

Ampol

$33.95 ▼ -4.20%

STO

Santos

$7.94 ▼ -3.64%

CAR

CAR Group

$24.17 ▼ -2.62%

QBE

QBE

$23.07 ▼ -2.12%

IAG

IAG

$7.71 ▼ -2.03%

CPU

Computershare

$33.30 ▼ -1.39%

ASX Focus

Overview

Iran peace deal optimism drove WTI oil down 0.88% to $96.60, splitting the ASX into clear winners (Qantas +5.76%, Whitehaven Coal +8.70%) and losers (Woodside -4.24%, Santos -3.64%, Ampol -4.20%) on Monday.

Financial Review

Qantas jumps 5.76% as oil falls on Iran peace deal hopes

Qantas (QAN) rose 5.76% to $9.18 on Monday as WTI crude fell 0.88% to $96.60, driven by optimism over a potential US-Iran ceasefire and reopening of the Strait of Hormuz. Lower oil prices directly reduce jet fuel costs, improving near-term margin expectations for the carrier.

Financial Review

Woodside, Santos, Ampol slide as oil drops below $100

Woodside (WDS) fell 4.24% to $30.74, Santos (STO) dropped 3.64% to $7.94, and Ampol (ALD) lost 4.20% to $33.95 as WTI crude fell sharply on Iran deal optimism. All three stocks face continued pressure if ceasefire reports solidify and oil prices extend their decline.

The Guardian

BHP leaked documents reveal backtracking on climate commitments

Leaked BHP documents show the world's largest miner has quietly shelved key decarbonisation projects, including a Pilbara emissions-reduction plant, while committing hundreds of millions to new diesel trucks. The revelations expose a gap between BHP's public climate strategy and internal capital allocation decisions, raising potential ESG and regulatory risk for the stock.


Macro & Policy

Overview

Oil prices fell below $100/barrel — WTI settling at $96.60 (-0.88%) — as reports of a near-term US-Iran peace deal and potential Strait of Hormuz reopening drove the dominant macro theme across global and Australian markets overnight.

The Guardian

Oil prices fall below $100 a barrel on hopes of Iran peace deal

WTI crude fell 0.88% to $96.60 as optimism grew around a potential ceasefire between the US and Iran, with reports suggesting the Strait of Hormuz could reopen within 30 days of a deal. Lower oil has direct implications for Australian energy producers, fuel retailers, and airlines.

Financial Review

Iran says deal is not imminent; Netanyahu vows increased strikes on Lebanon

Iran has pushed back on reports that a peace agreement is close, while Netanyahu signalled escalating military action in Lebanon, adding uncertainty to the oil price outlook. Trump separately stated there is "no rush" on a deal, tempering the initial market optimism that drove crude lower.


Commodities

Overview

WTI oil fell 0.88% to $96.60 on Iran peace deal optimism, the single largest commodity move overnight and the primary driver of Monday's ASX energy sector selloff.

MarketWatch

Oil prices tumble as deal to end Iran war appears close

WTI crude dropped to $96.60 on reports a US-Iran ceasefire could reopen the Strait of Hormuz within 30 days, with Trump adding uncertainty by saying there is "no rush." For ASX investors, sustained oil weakness would continue to pressure Woodside, Santos, and Ampol while providing tailwinds for Qantas.

Google News / Investing.com

Gold eases as risk appetite improves on Iran optimism

Gold slipped 0.15% to $4,523.20 as improved risk sentiment — linked to Iran peace deal hopes — reduced safe-haven demand. Newmont (NEM) on the ASX bucked the trend, rising 5.06% to $158.40, suggesting company-specific or sector rotation factors were also at play.


Global Markets

Overview

The S&P 500 rose 0.37% to 7,473.5 and the Dow gained 0.58% to 50,579.7 overnight, with broader equity gains underpinned by falling oil prices and optimism around an Iran ceasefire deal.

MarketWatch

S&P 500 profit growth fastest in nearly 5 years, driven by underdog sectors

S&P 500 earnings growth has reached its fastest pace in nearly five years, with smaller and mid-tier sector companies contributing meaningfully alongside the large-cap tech names. For Australian investors, this broad-based US profit expansion supports continued risk appetite and provides a positive backdrop for ASX equities at Tuesday's open.

The Guardian

Guzman y Gomez faces class action from US workers over closed stores

ASX-listed Guzman y Gomez (GYG) is facing a class action from US workers following the closure of its Chicago stores, adding legal and reputational risk to its North American expansion strategy. The claim relates to worker entitlements at the shuttered locations, and the financial magnitude of the action has not yet been disclosed.


The Number

$96.60/bbl

WTI crude settled at $96.60 on Iran peace deal optimism — the move hammered ASX energy stocks Woodside (-4.24%), Santos (-3.64%), and Ampol (-4.20%) on Monday, and further deal confirmation could extend those losses at Tuesday's open.

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