The benchmark ASX200 leapt 105.1 points, or 1.36 per cent, to close at 7838.8, while the broader All Ordinaries index surged 101.8 points, or 1.28 per cent, to hit 8076.9.
Tech stocks lifted 0.6 per cent to finish at 3107.7.
Tuesday’s surge clawed back losses from Monday’s slump and pushes the market to within 72 points of its record high of 7910.
The Aussie dollar gained 0.1 per cent against the Greenback to buy US66.6c at the close.
The rally was broad, with all 11 industry sectors ending in the green, led by energy, with a 2.23 per cent upswing and materials with a 1.83 per cent rise.
“The oil price touched a high of $81.90 on Tuesday, its highest level in eight weeks,” IG markets analyst Tony Sycamore said.
“The gains in oil have been supported by concerns over supply following recent Ukraine drone attacks on Russian oil infrastructure and hopes of improving demand as the US driving season gathers momentum.”
Sector heavyweight Woodside Energy advanced 3.67 per cent to $27.96 a share, Santos lifted 1.73 per cent to $7.63 and Beach Energy climbed 1.69 per cent to $1.50.
