Financial Wire

ASX Preview: Australian Shares to Rise on Renewed US-Iran Talks Optimism; Qantas Airways Raises Fiscal 2026 Fuel Cost Forecast

-- Australian shares are poised to rise on Tuesday after oil markets were shaken by escalating Middle East tensions, as the US moves to restrict shipping through the Strait of Hormuz.

US President Donald Trump said Iran had reached out to restart negotiations after failed weekend talks in Islamabad, Pakistan, as investors weighed the risk of further disruption to global energy supplies.

Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1%, 1.2%, and 0.6%, respectively.

In the macroeconomy, Australia's wages rose 0.8% in the March quarter while employment added about 23,000 jobs, pointing to a steady but gradually cooling labor market with wage growth stabilizing near a new baseline, Commonwealth Bank of Australia (ASX:CBA) said in a Monday report.

In corporate news, Qantas Airways (ASX:QAN) now expects fuel cost for the second half of fiscal 2026 to be AU$3.1 billion to AU$3.3 billion, as February jet refining margins peaked at about $120 per barrel.

Westpac Banking (ASX:WBC, NZE:WBC) will boost credit provisions for customers in energy-intensive sectors due to the volatility and economic uncertainty created by the Middle East conflict.

Australia's benchmark index fell 0.4% or 34.6 points to close at 8,926 on Monday.

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ASX Preview: Australian Shares to Rise on Renewed US-Iran Talks Optimism; Qantas Airways Raises Fiscal 2026 Fuel Cost Forecast | Financial Wire