The Strait of Hormuz is expected to reopen within days after an interruption of more than three months that affected nearly a fifth of global seaborne oil shipments. The US and Iran have signed a ceasefire agreement, and President Donald Trump said the passage would be “completely opened” and “toll free.” Brent crude previously jumped from below $US70 a barrel in February to more than $US120 a barrel in April. Analysts say a full recovery in shipping could take 3–6 months, while futures may fall quickly and spot prices could ease within weeks.

A possible ceasefire agreement between the US and Iran helped lift US stocks, with the Nasdaq 100 up 3.1% and the Dow closing at a record. SpaceX shares surged 19.6% on their second day of trading after reports that Australian billionaire Gina Rinehart’s Hancock Prospecting took a reported $1.4 billion stake at IPO. In Australia, markets are overwhelmingly expecting the RBA to leave interest rates unchanged at its policy meeting. ASX futures point to a modest pullback, with SPI 200 futures down 1.1%.