Australian shares have abruptly reversed course after US President Donald Trump suggested he could pull his country out of the war with Iran even if the vital Strait of Hormuz remained largely closed.
The S&P-ASX200 index was trading as much as 0.6 per cent lower on Tuesday before changing course on Mr Trump’s reported comments to his aides and surging 1 per cent into the green. It closed 0.25 per cent off at 8481.8 points.
The index dropped 6.6 per cent in March for its worst monthly performance in nearly four years.
Since the US and Israel launched their first attacks on Israel four weeks ago, Mr Trump has confused investors with conflicting messaging about the goals of the war, which has jolted global financial markets by sending energy prices soaring and fuelling inflation.
While the latest comments, reported in the Wall Street Journal, eased some market tensions, the US leaving Iran effectively in control of the Strait and not restoring oil and gas flows from the Middle East would likely only worsen the growing global energy crisis.
More to come.
https://thewest.com.au/business/energy/australian-shares-whipsaw-back-into-green-on-new-donald-trump-war-report-c-22074763
