ASX to follow Wall Street higher as Middle East tensions impact oil prices

Australian markets are poised for a higher opening, tracking gains on Wall Street which was buoyed by softer-than-expected US inflation data. ASX futures indicate a rise of approximately 0.5%.

However, rising geopolitical tensions in the Middle East cast a shadow. Oil prices jumped more than 10% yesterday amid worsening hostilities and actions by former President Donald Trump concerning the Strait of Hormuz. Brent crude futures saw another increase of 2.2% to $US85.10 per barrel. Geopolitical strategist Michael Feller noted that Iran holds "escalation dominance" in the conflict, suggesting oil prices may continue to climb as prospects for resolution diminish.

In corporate news, Life360 co-founder Chris Hulls was named Australia's highest-paid executive for the last financial year, earning close to $48 million. This figure is nearly 500 times the average full-time wage. Hulls, who resides in the US, has led the company for nearly two decades. Other US-based CEOs among the top earners included ResMed's Mick Farrell and News Corporation's Robert Thomson. The average earnings for CEOs of Australia's top 100 listed companies stood at about $6 million, approximately 55 times the average wage in FY2025.

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It's not just him who's dictating the terms. Iran has, in the parlance of international relations, escalation dominance here.