ASX to rise, Wall St gains, oil drops
Australian shares are poised to rally, in line with gains in New York as investors interpreted Iran's missile attacks on two US bases in the Middle East as signs of a measured response. Oil dropped.
The missile attacks on US bases in Qatar and Iraq were viewed as a sign that Iran's ability to widen the war with Israel may be limited. Brent Crude tumbled more than 6 per cent.
Israel continued its air assault on Iran, hitting more targets in Tehran including the gates to Evin Prison, the primary facility where Iran holds political dissidents.
'History suggests most geopolitically-led sell-offs are short-lived/modest,' Morgan Stanley strategists led by Michael Wilson wrote in a note. 'Oil prices will determine whether volatility persists.'
'Prior geopolitical risk events have led to some volatility for equities in the very short term (i.e., next few days), but 1/3/12 months post these events, the S&P 500 has been up 2 per cent/3 per cent/9 per cent, on average.'
In a speech, Federal Reserve vice chair for supervision Michelle Bowman said: 'Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labour market.'
Market highlights
ASX futures are pointing up 46 points or 0.5 per cent to 8504.
All US prices are as of 2.20pm New York time.
Today's agenda
Queensland and New South Wales will table state budgets on Tuesday.
In China, the Standing Committee of the 14th National People's Congress is holding its 16th session through to June 27. The Committee is expected to review draft revisions to laws regarding public security, unfair competition, maritime, fisheries and public health.
In the Netherlands, NATO heads of state are meeting at the Hague. Top of discussion is defence spending with NATO proposing countries lift defence spending to a target of 5 per cent of GDP (3.5 per cent on direct defence, and a commitment of 1.5 per cent to wider security spending).
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Sky News AU
34 minutes ago
- Sky News AU
Qatar Airways suspends all flights after Iranian strikes on US air base
Australian travellers are being warned to closely monitor their flight schedules after several planes were diverted and an airline suspended all flights amid ongoing conflict in the Middle East. Iran launched an attack on the US' Al Udied Airbase in Qatar overnight, following the US strikes on three Iranian nuclear facilities days earlier. The attack was thwarted without casualties, Qatari authorities have said. Qatar Airways temporarily suspended all flights in the wake of the attack, due to the closure of air traffic movement in the State of Qatar. 'We are working closely with government stakeholders and the relevant authorities to support any passengers that have been impacted, and will resume operations when the airspace reopens,' the airline said in an online statement. 'The safety of our passengers and crew remains our highest priority.' The airline has since confirmed it was reinstating its flights as the airspace reopened. Additional staff have been deployed at Hamad Interational Airport and other airports to assist passengers affected by the delays and cancelled flights. 'As operations resume, we anticipate significant delays to our flight schedule,' the spokesman said. 'We would advise passengers to check or the Qatar Airways mobile application ahead of travel.' The temporary closure of the Qatari airspace forced several flights from Australia to divert to other countries. A Virgin Australia spokesman told NewsWire two flights operated by Qatar Airways had been diverted on the way to Doha. Flight VA1 (Sydney–Doha) was diverted to Bengaluru and VA15 (Brisbane–Doha) diverted to Muscat. The flight from Sydney to Doha was forced to perform a U-turn halfway through the flight, before landing in Bengaluru in India. 'Both aircraft landed safely,' they said. 'Guest recovery is being co-ordinated by Qatar Airways, including support on the ground and assistance with onward travel arrangements.' Passengers scheduled to travel on Virgin Australia flights between Australia and Doha are advised to closely monitor their flight information. Doha is one of the major stopovers for Australians travelling to Europe, which is entering its summer season. One Australian who was planning to fly to Dublin on Tuesday told Today he saw 'lights coming from the distance' as missiles hit the skies. 'And at first it sort of it felt like sort of dull fireworks there, with a bit of rumblings going off,' he said. On Tuesday morning, Foreign Minister Penny Wong condemned Iran's strikes on the US bases of Qatar and Iraq, reiterating calls for 'de-escalation, dialogue and diplomacy'. 'There have been disruptions to flights with temporary airspace closures in the region,' she said. 'Closure of airspace around transit hubs may impact flights globally, causing delays and cancellations. Australians travelling should seek updates from their airlines and follow (Smartraveller). 'Australians in need of emergency consular assistance should contact the Australian Government's 24-hour Consular Emergency Centre 1300 555 135 (within Australia) and +61 2 6261 3305 (from overseas).' More to come Originally published as Qatar Airways reinstates all flights after Iranian strikes on US air base
Sky News AU
39 minutes ago
- Sky News AU
‘Outside chance' Deputy Prime Minister Richard Marles could meet face-to-face with Trump this week after Albanese's G7 snub
There is an 'outside chance' Deputy Prime Minister Richard Marles could meet President Donald Trump face-to-face at the NATO summit in the coming days after Prime Minister Anthony Albanese was snubbed at the G7 last week. The summit is set to take place at the Hague, the Netherlands, on June 24 to the 26. A Canberra source told Sky News political correspondent Cameron Reddin the Defence Minister had an 'outside chance' of becoming the first member of government to meet the leader of the free world, although it was a 'very fluid situation'. Trump is due to fly to the Netherlands on Tuesday and may meet with the four Indo-Pacific nations, Australia, New Zealand, Korea and Japan, who form the IP4 meeting, to take place this week. However, Mr Albanese was not alone in his decision not to attend the NATO summit and was joined by South Korea and Japan whose leaders would also skip the trip. Japan's Fuji Television said Prime Minister Shigeru Ishiba was pulling out because a planned meeting between NATO and the group of four Indo-Pacific nations (IP4) was not likely to take place, and because a meeting with Trump was also unlikely. Japan said Foreign Minister Takeshi Iwaya will travel to the Netherlands to attend NATO-related functions and hold bilateral meetings. Speaking to Sky News on Tuesday, Nationals Senator Matt Canavan said if Mr Marles did manage to score a one-on-one with Trump it would be 'very embarrassing' for the Prime Minister. 'This is a big problem now that our Prime Minister hasn't met with President Trump six months after his election,' he said. ' There has been ample time to do that.' Mr Canavan said he did not blame Mr Albanese for being snubbed at the G7 as it was 'out of his control', but a meeting in Washington in the six months since Trump's inauguration should have occurred. 'Many other leaders have done this. We're one of the Five Eyes nations, so one of the four most important allies to the United States,' he said. 'It is unacceptable that our government, our Prime Minister, has not met with the new Prime Minister six months after (Trump's) election.' Over the weekend, Sky News revealed Mr Albanese had yet to receive a phone call from Trump after their meeting was cancelled at the G7 summit in Canada. As of Saturday, Mr Albanese had not received a phone call from Trump, even though he contacted Indian Prime Minister Narendra Modi and Mexican President Claudia Sheinbaum. There has been no indication that the President has contacted other cancelled counterparts, such as South Korean President Lee Jae-myung, or Mr Albanese. The Albanese government has suggested there is no cause for concern, despite the highly-visible diplomatic snub. A meeting between the two leaders is still agreed to, according to senior government sources - and the question is simply when, not if. -with Reuters
The Age
39 minutes ago
- The Age
Trump is already casting Iran's retaliation as a sign of peace. It offers both sides an ‘off ramp'
Iran's missile attack on a US air base in Qatar was telegraphed well in advance, suggesting Tehran intended a symbolic show of force while offering a way to de-escalate after US airstrikes over the weekend. In a social media post on Monday afternoon, US President Donald Trump called the strike a 'very weak response' and thanked Iran 'for giving us early notice, which made it possible for no lives to be lost, and nobody to be injured.' 'Perhaps Iran can now proceed to Peace and Harmony in the Region, and I will enthusiastically encourage Israel to do the same' Trump said. 'IT'S TIME FOR PEACE,' he added in a subsequent post. Oil prices slumped in the wake of Iran's attack on the US base, with West Texas Intermediate plummeting by more than 6 per cent to trade below $70 a barrel. That reflected investor sentiment that the Iranian strikes were less severe than feared and supplies from the Middle East won't be disrupted. The assault, which involved short- and medium-range ballistic missiles, early on Tuesday AEST targeted the Al Udeid Air Base in Qatar, which officials said had been largely evacuated. Loading Iran's Supreme National Security Council said the number of missiles fired matched the number of bombs dropped by the US on the Islamic Republic days before and the strike 'poses no danger' to Qatar, which it called 'our friendly and brotherly country'. One official with knowledge of Western intelligence assessments said the attack was a typical example of an 'off-ramp' escalation and warned it was more difficult to understand whether – and at what point – Israel would stop its own military activities in the region. There was no immediate response from Israel to Trump's posts late Monday. 'It feels choreographed and intentional,' said Jonathan Panikoff, a former deputy national intelligence officer for the Near East. 'The Iranians get to tell their population they struck a mighty blow against the US, even if they didn't, and Trump has the room now to decide not to retaliate.'
