S&P/ASX 200 Index (ASX: XJO) shares are surging on Tuesday, rising by 2.6% or 224.5 points to an intraday peak of 8,804 points.
All 11 ASX 200 market sectors are higher today, with tech shares in the lead, up 6.2%, followed by materials and financials, both up 2.8%.
As we've previously reported, ASX investors appear keen to buy the dip after a 7.8% fall for ASX 200 shares in March.
Trading in April has been volatile, but overall, ASX 200 shares are already 3.5% higher this month.
However, investors are buying ASX 200 shares amid continuing uncertainty as to how the Iran war will play out.
Regardless of when the war ends, the global energy shock will reverberate for months, potentially pushing up inflation and interest rates.
But today, investors appear to be looking through those near-term risks.
Initial panic over the conflict and oil shock appears to be subsiding, with investors reverting to their traditional forward-looking nature.
When investors aren't panicking about daily news, they tend to trade on what they expect will happen over the next six to 12 months.
Last week, James Gerrish from Shaw and Partners said the "war fear" in the market was fading, although "we're not out of the woods yet".
Gerrish noted that the ASX 200's steep fall in March was "potentially affording an opportunity to buy high-performing stocks at a cheaper entry".
Image source: Getty Images
Are investors buying the dip?
In the surging tech sector today, WiseTech Global Ltd (ASX: WTC) shares are up 5.8% to $40.06.
The Xero Ltd (ASX: XRO) share price is up 4.4% to $77.31.
TechnologyOne Ltd (ASX: TNE) shares are up 4.7% to $28.17, and Life360 Inc (ASX: 360) is up 5% to $19.64.
Nextdc Ltd (ASX: NXT) shares are 13.3% higher at $12.76 after the company announced a $1 billion hybrid securities offer.
Among the miners, the BHP Group Ltd (ASX: BHP) share price is up 3.3% to $52.97.
Rio Tinto Ltd (ASX: RIO) shares are up 2.6% to $165.88, and Fortescue Ltd (ASX: FMG) is 2.3% higher at $20.72.
The largest ASX 200 lithium mining share, PLS Group Ltd (ASX: PLS), is up 2.9% to $5.24.
The market's largest ASX 200 gold share, Northern Star Resources Ltd (ASX: NST), is 3.4% higher at $22.65.
Among the financials, the Commonwealth Bank of Australia (ASX: CBA) share price is $178.08, up 3.1%.
National Australia Bank Ltd (ASX: NAB) shares are up 3% to $43.04.
Westpac Banking Corp (ASX: WBC) shares are $40.88, up 2.6%, and ANZ Group Holdings Ltd (ASX: ANZ) shares are $37.60, up 2.7%.
Zip Co Ltd (ASX: ZIP) shares are flying on Tuesday, up 8.6% to $1.71.
In energy, Woodside Energy Group Ltd (ASX: WDS) shares are $35.24, up 0.9%, while Santos Ltd (ASX: STO) is $8.07, down 0.2%.
Oil prices continue to trade close to four-year highs.
Brent crude is US$110.40 a barrel, up 0.5%, and WTI crude is US$113.50 per barrel, up 0.9% on Tuesday.
What's the latest in the Middle East?
The US says it is continuing to negotiate with Iran amid a renewed threat from the President that the US will bomb Iran's power plants.
Over the weekend, US President Donald Trump said he would target power plants and bridges if Iran did not reopen the Strait of Hormuz.
In an expletive-laden post on Truth Social, President Trump said:
Tuesday will be Power Plant Day, and Bridge Day, all wrapped up in one, in Iran.
There will be nothing like it!!!
Open the Fuckin' Strait, you crazy bastards, or you'll be living in Hell – JUST WATCH! Praise be to Allah.
Technically, the strait is not closed. However, no shipping company is willing to sail through it given the risk of Iranian attacks.
Iran reportedly rejected a ceasefire proposal over the weekend.
Iran also vowed to respond to any US strikes on civilian infrastructure by attacking the energy assets of Gulf neighbours.
