The ASX share market is up today – a rare event for March 2026. The positivity has been spurred by reports that US President Trump wants to make a deal with Iran.
There's an acronym for when it comes to Trump and the share market: TACO, which stands for Trump Always Chickens Out. Not the most complimentary way of describing his decisions to avoid (economic) disaster, but that has been a recurring theme over the past 15 months to date.
So, with Trump indicating he wants to work something out with Iran, investors may be wondering whether the ASX share market crash is over.
Image source: Getty Images
Are the declines over?
I'm not about to try to guess how Iran, the US, and Israel will act from here. The war itself was a surprise, how Iran targeted other Middle East countries was a surprise, and it's certainly possible any of the participants could do something that lengthens the conflict in another twist.
You'd need a crystal ball to know when the conflict will finish and when fuel-carrying ships can resume their passage through the Strait of Hormuz unimpeded.
But I do have some thoughts about the actual ASX share market itself.
Again, I don't have a crystal ball. However, the market has a history of falling rapidly and recovering even before the actual issue (the GFC, the COVID pandemic, and high inflation a few years ago) has been fully resolved. It's a panic at the start until optimism and bargain hunters return.
We may have seen the worst of the market being fearful, so this could be the time to be greedy while some ASX share prices are still trading at fearful prices. Of course, we'll have to see how long it takes for the inflation effect of higher fuel prices to play out. Hopefully it's quick.
The most important question is – are the share prices on the ASX share market we're presented with attractive?
I certainly think so. If the conflict is indeed winding down, then the impacts could be short-lived.
There are plenty of high-quality ASX shares that are trading at valuations that we've not seen for months or even years before now.
Which ASX shares could be strong buys today?
The Iran conflict, as well as AI concerns, have pushed a number of ASX shares to very appealing places. It's important to reflect on the fact that these businesses are generating the most revenue ever.
I'm looking at names like Xero Ltd (ASX: XRO), Guzman Y Gomez Ltd (ASX: GYG), Pro Medius Ltd (ASX: PME), Breville Group Ltd (ASX: BRG), Lovisa Holdings Ltd (ASX: LOV), and more. Over the next three years, I think their share prices could be contenders for market-beating returns as they deliver positive profit growth.
