The Australian sharemarket surged to a two-month high on Monday following the announcement of a peace deal between the United States and Iran, which also pushed oil prices down to their lowest levels in three months. The benchmark ASX 200 index increased by 110 points, or 1.25 percent, closing at 8,914, while the broader All Ordinaries rose 1.35 percent to finish at 9,128. The Australian dollar strengthened by 0.4 percent to 70.7 US cents.

The market response was led by gains in the materials sector and the country's major banks. Among materials, gold producers stood out, with Bellevue Gold shares climbing 13.38 percent to $1.53, supported by gold prices reaching approximately $4,335 US per ounce. Iron ore miners also posted strong results, with BHP rising 3.58 percent to $65.18, Rio Tinto up 2.71 percent to $189.31, and Fortescue Metals Group gaining 3.02 percent to $20.82.

Australia’s four largest banks contributed positively to the market’s rise. Commonwealth Bank shares increased 1.43 percent to $161.79, Westpac rose 0.91 percent to $35.32, National Australia Bank gained 2.63 percent to $37.46, and ANZ climbed 1 percent to $34.51.

The peace agreement in the Middle East notably influenced commodity prices, with Brent crude oil falling 4.3 percent to $83.59 US per barrel—its lowest since March. This decline in oil prices contributed to a significant downturn in the energy sector, which dropped 5.06 percent. Analysts noted that while the deal boosted confidence in sectors tied to global growth, it also removed some of the momentum from the energy market. The ceasefire’s formal signing is scheduled in Switzerland within the coming days, and market participants remain cautious due to potential geopolitical uncertainties.

Other sectors experienced mixed outcomes. Utilities declined 1.81 percent, telecommunication services fell 1.20 percent, and consumer staples decreased by 0.95 percent.

In corporate news, Sigma Healthcare shares rose 6.1 percent to $2.80 after the company announced it would not proceed with acquiring the UK pharmacy chain Boots. Additionally, the Australian Securities Exchange agreed to pay a $20.5 million penalty and $3 million toward the costs of the Australian Securities and Investment Commission as part of a resolution involving misleading statements related to the CHESS replacement system, just hours before a Federal Court trial was set to begin.