The S&P/ASX 200 Index (ASX: XJO) is pushing higher again on Wednesday as the market continues its recent recovery.
At the time of writing, the benchmark index is up 0.51% to 8,963 points after reaching an intraday high of 8,976.8 points.
That has taken the ASX 200 above Tuesday's peak and to its highest level in around 2 months.
At the latest check, 138 companies are trading higher, compared with 55 fallers and 7 unchanged stocks.
So, what is driving the market today?
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Oil price slide supports sentiment
The latest rise follows another large fall in global oil prices as traders respond to the proposed peace agreement between the United States and Iran.
Brent crude dropped 5.1% overnight to US$78.96 a barrel, its lowest closing level in 3 months.
The decline came after reports that Iran would be allowed to resume oil exports immediately under the agreement.
Lower oil prices are very positive for transport companies and other businesses facing high fuel costs. Travel shares have been among the stronger performers after Australia also eased its travel advice for parts of the Middle East.
However, the move is hurting energy producers. Woodside Energy Group Ltd (ASX: WDS) shares are down 3.05% to $29.13, while the S&P/ASX 200 Energy Index (ASX: XEJ) is drifting 2.18% lower.
Banks and miners lead the gains
The major banks and large miners are doing much of the heavy lifting today.
Commonwealth Bank of Australia (ASX: CBA) shares are up 1.08% to $163.62, while Westpac Banking Corp(ASX: WBC) shares have gained 0.27% to $35.85.
National Australia Bank Ltd (ASX: NAB) shares are 0.17% higher at $37.96, and ANZ Group Holdings Ltd (ASX: ANZ) shares are up 0.62% to $35.03.
BHP Group Ltd (ASX: BHP) shares have climbed 0.87% to $65.76, while Rio Tinto Ltd (ASX: RIO) shares are 0.26% higher at $189.21.
Northern Star Resources Ltd (ASX: NST) is also up 2.68% to $21.87.
Can the rally continue?
The ASX 200 has now gained more than 4% over the past week and is once again closing in on the psychological 9,000 mark.
However, there are still a few reasons for investors to remain cautious, such as the possibility of another RBA rate increase.
UBS has a year-end target of 8,800 points, which is already 1.8% below today's index level.
That means the recent rally has moved beyond the broker's forecast.
