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The Australian share market has finished higher on a relief rally after the US-Iranian conflict seemed to de-escalate following days of tension.

The benchmark S&P/ASX200 index closed on Thursday up 56.6 points, or 0.83 per cent, to 6,874.2 points, while the broader All Ordinaries was up 61.3 points, or 0.88 per cent, to 6,991.4 points.

Meanwhile the Australian dollar was buying 68.73 US cents, steady on the figure recorded at Wednesday’s close.