The S&P/ASX 200 Index (ASX: XJO) is enjoying one of its strongest sessions in months on Friday.
At the time of writing, the benchmark index is up 1.82% to 8,790 points after reaching an intraday high of 8,809 points.
That leaves the ASX 200 within 4.3% of its 52-week high and on track to finish the week comfortably higher.
The buying has also been spread widely across the market. Around 154 companies are trading higher, compared with only 38 fallers and 8 unchanged stocks.
Let's take a closer look at what is driving the market today.
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Wall Street sets the tone
Australian shares followed Wall Street higher after a strong overnight session.
The gains came after US President Donald Trump said a deal with Iran could be signed as early as this weekend.
The Dow Jones Industrial Average Index (DJX: .DJI) rose 1.9%, the S&P 500 Index (SP: .INX) gained 1.8%, and the Nasdaq Composite Index (NASDAQ: .IXIC) climbed 2.5%.
Investors are hoping a deal could bring the conflict to an end and reduce the risk of further disruption to oil supplies through the Strait of Hormuz.
Oil prices have fallen as those concerns ease, with Brent crude dropping below US$89 a barrel. That has taken some pressure off inflation expectations after weeks of concern about higher energy costs.
Excitement surrounding the US listing of Elon Musk's SpaceX (NASDAQ: SPCX) is also helping the mood. The company raised US$75 billion through its initial public offering (IPO), valuing it at around US$1.77 trillion.
Miners and banks lead the rally
During mid-afternoon trade, 9 of the ASX's 11 sectors are trading higher, with resources leading the way after jumping 3.11%.
BHP Group Ltd (ASX: BHP) shares are up 3.22% to $62.76, while Rio Tinto Ltd (ASX: RIO) shares have gained 2.67% to $184.80.
Fortescue Ltd (ASX: FMG) shares are also 2.63% higher at $20.12.
The major banks are also helping push the index higher. Commonwealth Bank of Australia (ASX: CBA) shares are up 2.26% to $159.96, while National Australia Bank Ltd (ASX: NAB) shares have climbed 2.09% to $36.43.
ANZ Group Holdings Ltd (ASX: ANZ) shares are 2% higher at $34.51, and Westpac Banking Corp (ASX: WBC) shares have gained 1.65% to $35.07.
There's also plenty of strength in consumer discretionary shares, with Wesfarmers Ltd (ASX: WES) shares up 2.58% to $86.49.
Energy shares miss out
Unfortunately, the rally is not helping every part of the market.
The S&P/ASX 200 Energy Index (ASX: XEJ) is shedding 1.13% as falling oil prices weigh on producers.
Woodside Energy Group Ltd (ASX: WDS) shares are down 1.84% to $30.94, making the company one of the few ASX 200 shares trading lower.
