Australian shares broke a four-day losing streak as investors returned to mining and financial sectors following renewed Middle East tensions that pushed oil prices higher.The S&P/ASX 200 Index gained 0.5% to 8806, with materials and banks leading the recovery.Copper prices surged 14% to $US4.85, boosting South32 (up 5.2%), Rio Tinto (up 3.8%), and BHP (up 2.5%).Uranium stocks also rose after Australia-India export agreements were finalized, with Paladin Energy up 4.1% and Deep Yellow soaring 7.4%.Banks like NAB, CBA, Westpac, and ANZ all gained between 0.5% and 0.9%.However, healthcare sectors faced declines as Pro Medicus dropped 6.3% following a sharp monthly rise, while energy stocks retreated slightly amid flat Brent crude prices.

The market's cautious optimism stemmed from analysts believing Middle East tensions would not disrupt critical energy flows through the Strait of Hormuz.