The Australian share market is poised to gain after US President Donald Trump indicated he would not respond militarily to Iran’s missile strike on US troops in Iraq.

The SPI200 futures contract was up 62 points, or 0.92 per cent, to 6814.0 points at 0700 AEDT on Thursday after the president eased Wall Street investors’ fears of all-out conflict.

President Trump said no Americans were harmed in the attacks and announced economic sanctions for Iran.

The missile strike was in response to a US airstrike last week which killed an Iranian general.

The president’s comments sent the S&P 500 and the Nasdaq to all-time highs, previously reached on the first trading day of 2020 on hopes of a US-China trade deal.

The ASX recovered from the uncertainty on Wednesday and closed 8.8 points down, or 0.13 per cent, to 6,817.6 points.

The Australian dollar this morning was buying 68.72 US cents, down from 69.73 US cents at Wednesday’s close.