Australian shares are poised to rise on Tuesday after oil prices tumbled nearly 7% on easing Middle East risk sentiment, as optimism grew over US-Iran talks and a potential reopening of the Strait of Hormuz.

Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 0.4%, 0.2%, and 0.6%, respectively.

In the macroeconomy, the ANZ-Roy Morgan Australian consumer confidence fell 0.3 points to 66.1 in the week of May 18 to May 24, ANZ reported Tuesday.

Australia's business conditions and sentiments report is due at 11:30 am Sydney time.

In corporate news, Mineral Resources (ASX:MIN) and joint venture partner Jiangxi Ganfeng Lithium approved a final investment decision to build a new flotation plant and develop underground mining at the Mt Marion lithium operation in Western Australia, with total capital investment estimated at AU$490 million.

Flight Centre Travel Group (ASX:FLT) said the Middle East conflict has "heavily impacted" its early fiscal fourth quarter results, including an estimated AU$10 million profit impact to leisure segment results in April.

Australia's benchmark index rose 0.4% or 35 points to close at 8,692 on Monday.