The S&P/ASX200 rose 7.8 points by midday on Wednesday, up 0.09 per cent, to 8,622.1, as the broader All Ordinaries gained 9.2 points, or 0.1 per cent, to 8,828.6.
Volatility settled on the back of relatively benign energy price movements overnight, but the risks of the Iran war had not eased at all, Capital.com senior market analyst Kyle Rodda said.
"The war rages on and its main theatre is the Strait of Hormuz. Signs of trickling supply from Iran out of the region to China and other allies have eased fears about completely choking off energy exports," Mr Rodda said.
"If anything could cause a rapid risk-on move in the markets, it's the US seemingly wresting control of the Strait from the Iranians."
Energy stocks led seven of 11 local sectors higher by lunchtime, up 0.9 per cent on the back of gains across oil, gas, coal and uranium producers.
Prime Minister Anthony Albanese has called an emergency national cabinet meeting with state and territory leaders to address concerns about high fuel costs and supply issues.
"We want to make sure that we do everything we can to shield the Australian economy, households and businesses from the worst of global uncertainty," he told reporters in Sydney.
The government would be announcing further measures in the coming days, and noted the impact of fuel costs on inflation and the Reserve Bank's call to increase the cash interest rate to 4.1 per cent on Tuesday.
Oil and gas giant Woodside edged 0.5 per cent higher as it elevated Lis Westcott to chief executive and managing director, in a widely expected appointment.
Ms Westcott has been acting as chief since Meg O'Neill departed in December for the top job at BP, where she takes the reins in April.
Iron ore and copper giant BHP also appointed a new boss, with the company's Americas president, Brandon Craig, to replace CEO Mike Henry after six and a half years at the helm.
BHP shares gained 0.6 per cent to $50.04, as iron ore futures hovered near two-month highs above $US107 a tonne.
Gold stocks were broadly lower, as the precious metal eased to $US5,001 ($A7,039) an ounce and the All Ordinaries gold sub-industry faded 0.7 per cent.
Metal recycling group Sims surged more than nine per cent on the back of a positive trading update on the back of strong prices in non-ferrous and memory chip markets.
Financial stocks were sluggish in the wake of Tuesday's interest rate decisions, the segment grinding lower as ANZ tumbled two per cent, as CommBank eked a 0.1 per cent lift to $176.24, while NAB and Westpac dipped roughly 0.3 per cent each.
In company news, the Australasian Centre for Corporate Responsibility has appealed a Federal Court decision that cleared Santos of misleading investors on 'net zero' and 'clean energy' claims in official communications.
Bed-in-a-box startup Koala will list on the ASX at the end of March at a $305 million valuation, after raising $20 million at $3.40 a share.
ARN Media shares dipped 1.5 per cent to 33.5 cents after it tore up its contract with controversial radio host Kyle Sandilands following the meltdown of the long-running Kyle and Jackie O Show.
Sandilands plans to fight the move, claiming he has not breached his contract.
The Australian dollar was buying 71.08 US cents, up from 70.61 US cents on Tuesday at 5pm, following the Reserve Bank's split decision to raise the cash interest rate to 4.1 per cent.
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