Australian shares are poised to rise on Tuesday as oil prices surged above $104 a barrel amid escalating Middle East tensions, after US President Donald Trump warned that a fragile Iran ceasefire was "on life support" following stalled negotiations and continued disruption to shipping through the Strait of Hormuz.

Overnight, the S&P 500 and the Dow Jones Industrial Average each rose 0.2%, while the Nasdaq Composite gained 0.1%.

In the macroeconomy, the ANZ-Roy Morgan Australian consumer confidence fell 3.1 points to 64.1 in the week of May 4 to May 10, ANZ reported Tuesday.

Investors are eyeing the release of Westpac consumer confidence and NAB business confidence reports.

In corporate news, Life360 (ASX:360) reported Tuesday first-quarter earnings of $0.03 per share on revenue of $143.1 million, compared with earnings of $0.05 on revenue of $103.6 million a year earlier.

Insurance Australia Group (ASX:IAG) is targeting gross written premiums of over AU$25 billion, a more than 15% return on equity, and high single-digit earnings per share growth per year by 2030.

Australia's benchmark index fell 0.5% or 42.6 points to close at 8,701.80 on Monday.