SYDNEY — Australia's benchmark share index fell 0.76% to 8,699.1 points by mid-afternoon Thursday, down 66.2 points, as a sharp overnight surge in oil prices tied to doubts over a potential U.S.-Iran peace deal outweighed encouraging domestic employment data that had briefly lifted investor sentiment earlier in the session.

The S&P/ASX 200 opened sharply lower Thursday, dropping 1.3% to 8,650 points at the market open, before recovering some ground through the morning and early afternoon to trade closer to flat by 2:58 p.m. local time. The decline followed losses on Wall Street overnight and came alongside a broad-based pullback across the local market, with 148 of the index's 200 constituent stocks trading lower and all but two of the market's major sectors posting losses for the session. The metals sector weighed particularly heavily on the broader index, with copper prices retreating from near-record highs.

The primary catalyst behind Thursday's weakness traced back to a sharp jump in global oil prices. According to Bloomberg data, West Texas Intermediate crude climbed 2.4% to $92.70 a barrel, while Brent crude surged 4.1% to $103.35 a barrel, with the moves attributed to growing doubts over the prospects for a U.S.-Iran peace deal. That renewed uncertainty marked a reversal from the more optimistic tone that had prevailed in markets earlier in the week,........

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