S&P/ASX 200 Index (ASX: XJO) shares closed 1.2% higher yesterday on renewed hopes of a deal between the US and Iran.
US President Donald Trump posted on Truth Social that he had called off a military strike on Iran that had been scheduled for today.
Trump said he did so after Persian Gulf leaders implored him to wait for details of a deal that they think will be acceptable to the US.
However, Trump also instructed the US military to remain prepared for "a full, large scale assault of Iran" if a deal was not reached.
Meanwhile, the critical Strait of Hormuz, through which 20% of the world's oil and gas supply is shipped, remains effectively closed.
The war has contributed to the ASX 200 falling into the red for 2026.
ASX 200 shares are down 1.4% in the calendar year to date (YTD).
Despite this, experts say some stocks have strong potential upside ahead. Here is a selection of them.
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Nick Scali Ltd (ASX: NCK)
The Nick Scali share price closed at $14.03, up 2%, yesterday.
This ASX consumer discretionary share is down 41% YTD.
Macquarie has renewed its buy rating on Nick Scali shares with a $21.60 target.
This indicates a potential 54% upside ahead.
Flight Centre Travel Group Ltd (ASX: FLT)
The Flight Centre share price finished at $9.98, down 1.9%, on Tuesday.
This ASX 200 travel share is down 33% YTD.
Morgan Stanley has reaffirmed its buy rating on Flight Centre shares with a $16 target.
This suggests a potential 60% capital gain ahead.
Global Lithium Resources Ltd (ASX: GL1)
The Global Lithium share price closed at 52 cents on Tuesday, up 7.3%.
This ASX lithium share has ripped 186% over 12 months on the back of recovering lithium prices.
As an example, the lithium carbonate price has skyrocketed 57% YTD and 195% over 12 months.
Macquarie has renewed its buy rating with a 12-month target of 80 cents.
This implies 55% capital growth ahead.
Brambles Ltd (ASX: BXB)
The Brambles share price finished Tuesday's session is $17.53, down 0.6%.
This ASX industrial share is down 23% YTD.
Citi renewed its buy rating on Brambles shares with a $27.55 price target on Monday.
This suggests a potential 57% upside ahead.
Alkane Resources Ltd (ASX: ALK)
The Alkane Resources share price rose 4.1% to $1.53 yesterday.
MA Financial Group has reiterated its buy call on this ASX 200 gold share.
The broker lifted its price target from $2.25 to $2.30.
This implies a potential 50% capital gain ahead.
