The Australian sharemarket finished higher on Monday after global oil prices dropped below US$100 a barrel amid growing optimism that the United States and Iran could reach an agreement to reopen the Strait of Hormuz.The S&P/ASX 200 Index rose 0.4 per cent, gaining 35 points to close at 8692, with investors responding positively to easing geopolitical tensions and lower inflation concerns.Brent crude fell 5.5 per cent to US$97.

86 after US officials indicated that negotiations with Iran were progressing and that oil and gas shipments through the Strait of Hormuz could soon resume following a 12-week disruption.The lower oil price also lifted the Australian dollar by 0.6 per cent to US71.70¢.Mining companies were among the strongest performers.Gold miners rallied as bullion prices increased on expectations that softer oil prices could ease inflationary pressure.Resolute Mining surged 9.4 per cent, while Newmont and Northern Star also posted strong gains.

Coal producers rose sharply after a deadly explosion at a coal mine in China’s Shanxi province raised fears of supply shortages and pushed Chinese coal prices higher.Whitehaven Coal and Yancoal both recorded substantial gains.Energy stocks, however, weakened due to the fall in crude prices.Woodside Energy and Viva Energy both declined during the session.

Banking stocks delivered mixed results, with Commonwealth Bank falling after Citi warned its valuation did not yet reflect the impact of the federal budget, while NAB, Westpac and ANZ posted gains.Among individual companies, Qantas climbed nearly 6 per cent as lower fuel costs improved sentiment despite delays to Airbus aircraft deliveries.Charter Hall rose after upgrading earnings guidance, and Adore Beauty gained following stronger revenue growth expectations.