# ASX Rises as Oil Prices Drop Amid Iran Peace Hopes Energy stocks decline while airlines rally ahead of the Reserve Bank interest rate decision. - **Source:** [Sydney Morning Herald - Latest News](https://www.smh.com.au/rss/feed.xml) - **Published:** 2026-11-03 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/8e028cb0-a583-4984-b535-6624e536e817 ## Market Response to Geopolitics The Australian sharemarket opened higher, with the ASX 200 climbing 29.2 points to reach 8885.70. This positive momentum occurred as Brent crude prices plummeted 7.6 percent to below $105 per barrel. Investors reacted to renewed diplomatic efforts between the US and Iran, signaling potential de-escalation in the ongoing Middle East conflict. ## Energy Sector Downturn Energy stocks faced significant pressure following the sharp decline in global oil prices. Woodside and Santos shares both slid 3.8 percent, while refiner Ampol dropped 3.5 percent. Coal producers Yancoal and Whitehaven also suffered, falling 4.9 percent and 4.2 percent respectively, as fossil fuel alternatives lost their competitive pricing advantage in the market. ## Airline Industry Gains Airlines emerged as major beneficiaries of the falling energy costs, which promise to reduce substantial jet fuel expenses. Qantas Airways rallied 6.5 percent during the session, while Virgin Australia saw an 8.7 percent jump. These gains reflect investor optimism regarding improved profit margins for carriers as operational fuel costs begin to stabilize. ## Central Bank Policy Outlook Market participants remain focused on the Reserve Bank of Australia, which is expected to announce its fifth interest rate hike this year. Economists anticipate this move to combat persistent inflation levels. The decision, scheduled for 2.30pm AEDT, remains a critical factor for financial markets already navigating complex geopolitical and domestic economic pressures. ## Mining and Banking Stability Mining and banking giants, which constitute over half of the ASX, provided underlying support for the market. BHP shares gained 0.4 percent, while gold miners like Northern Star and Evolution Mining jumped over 3 percent. Among the Big Four banks, CBA rose 1.3 percent, helping offset minor losses seen in other financial institutions. ## Tech Sector Volatility The tech sector showed resilience despite shaky performance on Wall Street. WiseTech Global rose 1.2 percent and AI data centre operator NextDC gained 2.3 percent. This local strength contrasts with broader concerns regarding AI profitability and bubble risks, which have recently caused significant sell-offs for major US technology firms and hardware providers. ## US Market Performance Wall Street experienced mixed results as early gains faded. The S&P 500 sank 0.5 percent while the Nasdaq fell 1.1 percent, driven by volatility in AI-focused stocks. Marvell Technology dropped 12.7 percent following acquisition news, and Apple shares fell 2.8 percent after hours due to concerns over profit margins and supply chain constraints. ## Global Economic Context International markets showed varied responses to the shifting economic landscape. European indexes rose, while South Korea’s Kospi jumped 2.2 percent. In China, indexes recovered slightly as the People’s Bank of China announced a 100 billion yuan program to support the market. These movements highlight the ongoing global sensitivity to energy prices and geopolitical stability. ## Sources covering this story - https://www.smh.com.au/business/markets/asx-set-to-jump-on-rba-day-wall-street-rises-as-oil-prices-tumble-20261103-p61ar8.html?ref=rss&utm_medium=rss&utm_source=rss_feed — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._