Iran Deal Drives ASX Up

The ASX 200 had its best week since April, gaining 2.1% as Trump flagged a peace deal with Iran could be signed as soon as this weekend, sending Brent crude down 2% to a two-month low of $US88.60. Materials and banks led the charge, with copper and aluminium prices surging on the prospect of a Hormuz reopening. Gold steadied at around $US4,200 an ounce after falling more than 20% since the conflict began. Energy was the exception, with oil stocks sold off on the expectation that a peace deal would bring prices lower. Traders are also positioning ahead of the RBA's Tuesday decision, with the central bank widely expected to hold rates steady. 

This week’s best performers

Steadfast Group Limited (ASX:SDF) +30.05%

Steadfast Group surged 36.2% on Wednesday after the insurance broking network received a conditional takeover proposal from US-based Amwins Group and Dragoneer Investment Group, offering $6 per share in cash and valuing the business at around $7.7 billion in a full buyout that would take Steadfast off the ASX entirely. The offer is non-binding and indicative at this stage, meaning the acquirers haven't committed to anything yet and Steadfast's board still needs to respond. At $5.38, Steadfast still trades below its 52-week high of $6.66, leaving room for the board to argue the $6 offer undersells the business and for a bidding war if other buyers come to the table.

This week’s worst performers

Electro Optic Systems Holdings Limited (ASX:EOS) -14.95%

EOS fell this week after completing a $230 million capital raise, which included a $40 million retail share purchase plan that attracted nearly four times its original $25 million target. When a company issues a large volume of new shares, the price typically softens as that stock hits the market. Nothing fundamentally changed. EOS makes laser tracking and communications technology for satellites, and with SpaceX planning to deploy up to 42,000 Starlink satellites, the need for ground-based infrastructure to track and communicate with those satellites is growing fast. EOS is one of the very few companies in the world that can provide it. With 60-80% of its $726 million order book expected to convert to revenue in 2026 and 2027, the week's drop looks like a short-term reaction to share issuance rather than any change in the company's outlook.