The S&P/ASX200 rose 35 points on Monday, up 0.4 per cent, to 8,692, as the broader All Ordinaries gained 38.2 points, or 0.43 per cent, to 8,915.4.
Equities markets across most of Asia made decent gains, as investors leaned into White House claims the US was close to a deal with Iran, despite a lack of material progress.
"I am surprised that markets are buying this - we've heard this way too many times and it's never had a foundation in fact so far," Moomoo market strategist Michael McCarthy told AAP.
"That doesn't mean that it's definitely not happening, but I would have thought the market would be looking for more than a few offhand comments to really get going, but it was enough today and we saw some good gains across the boards."
Miners led the charge as the gold sub-index rallied by almost five per cent, as the precious metal hovered near $US4,554 ($A6,355) an ounce.
Iron ore giants BHP, Rio Tinto and Fortescue all advanced, as Fortescue announced the resignation of Elizabeth Gaines as executive director.
Mixed miners, copper and critical minerals producers all broadly improved, except Liontown, which retreated 3.6 per cent to $2.26.
Energy stocks were under pressure as Brent crude dropped below $US94.50 a barrel, weighing on Woodside, Santos, and refinery operators Ampol and Viva.
Uranium stocks swung in the other direction after recent selling pressure, and coal miners soared after an explosion at a mine in China's Shanxi province raised supply disruption concerns.
The drop in oil prices was good news for Qantas and Virgin, which each soared roughly six per cent higher.
The rally in Qantas' shares came despite Airbus flagging yet another delay to deliver the airline's ultra-long-range Airbus SE A350 to April 2027.
Beaten down consumer cyclicals stocks rebounded one per cent on improving investor confidence, in a broad sector move led by a nearly two per cent charge in Eagers Automotive.
Consumer staples were marginally better than flat, as Coles and A2 Milk dragged.
IT stocks staged a comeback of their own, the sector gaining one per cent as WiseTech, Xero and Technology One improved.
Financials slipped 0.1 per cent as slumps in Commonwealth Bank, Macquarie and the major insurers weighed, while ANZ, NAB and Westpac edged higher.
In company news, Adore Beauty shares rocketed more than six per cent higher after a trading update boasted improved revenue in the current financial year.
Charter Hall surged 6.7 per cent to $20.62 after it upgraded its 2025 full-year guidance and increased its property funds under management to $74.7 billion, up from $71.7 billion.
The Australian dollar was buying 71.66 cents, up from 71.36 US cents on Friday at 5pm, as improving risk sentiment supported the local currency.
ON THE ASX:
* The S&P/ASX200 gained 35 points, or 0.4 per cent, to 8,692
* The broader All Ordinaries rose 38.2 points, or 0.43 per cent, to 8,915.4
One Australian dollar trades for:
* 71.66 US cents, from 71.36 US cents at 5pm AEST on Friday
* 113.88 Japanese yen, from 113.54 Japanese yen
* 61.56 euro cents, from 61.47 euro cents
* 53.14 British pence, from 53.16 British pence
* 122.00 NZ cents, from 121.65 NZ cents
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