S&P/ASX 200 Index (ASX: XJO) shares are 0.8% lower at 8,771.1 points on Thursday.
The world is waiting for a second round of talks between the US and Iran to commence in Islamabad.
Meanwhile, the Strait of Hormuz, a critical waterway through which 20% of the world's oil and gas supply is transported, remains effectively shut down.
The US blockade of Iranian ports also remains in place.
The US hopes that by blocking Iran's own oil exports, it can coerce a peace deal through economic hardship.
In a Truth Social post, US President Donald Trump said:
Iran is collapsing financially! They want the Strait of Hormuz opened immediately- Starving for cash! Losing 500 Million Dollars a day.
Military and Police complaining that they are not getting paid. SOS!!!
Amid the ongoing oil shock and fears of a global recession, brokers have indicated continuing confidence in several ASX 200 shares.
These companies received renewed buy ratings this week.
Let's review.
Image source: Getty Images
Cochlear Ltd (ASX: COH)
The Cochlear share price is $96.22, down 3.3%, after hitting a 52-week low of $95.81 earlier in the day.
Cochlear shares were smashed this week after the hearing implant device maker downgraded its earnings guidance.
UBS analyst David Low is looking past the downgrade, though, and reiterated his buy rating today.
Low has a 12-month target of $302 on this ASX 200 healthcare share.
This implies a potential 212% upside over the next 12 months.
Droneshield Ltd (ASX: DRO)
The Droneshield share price is $3.75, down 2.2% today.
This ASX 200 industrial share has fallen by 20% over six months.
However, it remains 210% higher over 12 months.
Bell Potter renewed its buy rating on Droneshield shares with a 12-month target of $4.80 today.
This implies a potential 27% capital gain ahead.
REA Group Ltd (ASX: REA)
The REA share price is $174.39, down 0.9% today.
This ASX 200 communications share has fallen 27% over 12 months, but is up 10% over the past four weeks.
Citi renewed its buy rating on REA shares today with a 12-month price target of $199.
This implies a potential 14% upside ahead.
South32 Ltd (ASX: S32)
The South32 share price is $4.39, down 2.4% today.
Year-to-date (YTD), this ASX 200 mining share has ripped 24% higher.
Citi renewed its buy rating on South32 shares today.
The broker has a target price of $5.40, implying a potential 23% upside over the next year.
Northern Star Resources Ltd (ASX: NST)
The Northern Star Resources share price is $22.48, down 1.4% today.
The ASX 200 gold share has lost 8% of its value over the YTD.
However, it has recently embarked on a major comeback, rising 31% over four weeks.
Citi reiterated its buy rating on Northern Star Resources shares this week.
The broker's price target is $29.70, suggesting another 30% growth ahead.
