Australian shares are poised to fall on Wednesday as rising geopolitical tensions in the Middle East heighten uncertainty over global economic growth and US interest rate policy, with Federal Reserve Bank of Minneapolis President Neel Kashkari warning that the Iran conflict could delay expected rate cuts and fuel inflation pressures.

Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average fell 0.9%, 1%, and 0.8%, respectively.

In the macroeconomy, Australia's service sector sustained growth in February, with rising new business and staffing levels, but easing momentum and falling business confidence highlighted caution amid higher costs and inflation pressures, according to a monthly survey by S&P Global released Wednesday.

Additionally, Australian national accounts report is due at 11:30 am Sydney time.

In corporate news, Endeavour Group (ASX:EDV) reported Wednesday fiscal first-half underlying earnings of AU$0.156 per share on revenue of AU$6.68 billion, compared with underlying earnings of AU$0.167 on revenue of AU$6.62 billion a year earlier.

Woodside Energy Group (ASX:WDS), Santos (ASX:STO), and Beach Energy (ASX:BPT) are in focus as oil prices hit their highest level since January 2025 amid escalating US, Israel, and Iran tensions disrupting Middle East energy flows.

Australia's benchmark index fell 1.3% or 123.6 points to close at 9,077.30 on Tuesday.