Australian shares are poised to fall on Tuesday after oil prices tumbled to a three-month low following reports that the US and Iran signed a memorandum of understanding to end the conflict and reopen the Strait of Hormuz, erasing much of the crude's war-risk premium.

Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 1.7%, 3.1%, and 0.9%, respectively.

In the macroeconomy, investors are eyeing the Reserve Bank of Australia's interest rate decision.

In corporate news, Atlas Arteria (ASX:ALX) received notice that IFM Global Infrastructure Fund subsidiary Diamond Infraco 1 and its affiliates increased their holdings in the company to 38.26% from 34.48%.

Including those held by or on behalf of the listed equity funds, Diamond Infraco 1 and its affiliates now have a 39.61% stake in Atlas Arteria, compared with 35.68% from the previous notice.

HomeCo Daily Needs REIT (ASX:HDN) has reported a preliminary unaudited portfolio valuation gain of AU$92 million, or 1.8%, as at June 30, increasing the value of its portfolio to AU$5.19 billion from AU$5.1 billion at Dec. 31, 2025, primarily driven by net operating income growth.

Australia's benchmark index rose 1.3% or 110 points to close at 8,914 on Monday.