Australian shares are set to open lower on Tuesday, with oil prices rising above US$90 a barrel overnight after United States President Donald Trump threatened to bomb Oman if it interferes with Washington's negotiations with Iran over the Strait of Hormuz.
S&P/ASX 200 futures were down 36 points, or 0.4%, at 8,976.
Wall Street's three major indexes also finished lower on Monday as investors awaited quarterly results from major retailers for clues about the strength of US consumer spending.
The Dow Jones Industrial Average fell 0.5%, the S&P 500 declined 0.5%, and the Nasdaq Composite eased 0.3%.
"Concerns about recent softer data have the market being a bit tepid and waiting for retail earnings for direction," Phil Blancato, chief market strategist at Osaic Wealth, was quoted as saying in a Reuters story.
"There's a combination of summer doldrums and waiting for data on the consumer."
The Australian sharemarket finished lower on Monday, led by declines in retail and banking stocks as investors assessed a series of local corporate earnings reports.
JB Hi-Fi shares plunged 12.3% to lead the market lower after the retailer reported record sales growth and higher full-year profit but fell short of market expectations.
A busy earnings calendar is expected to keep investors focused on company results during Tuesday's session. Companies scheduled to report include Amplitude Energy, BHP, Challenger, Cochlear, CSL, HealthCo Healthcare and Wellness, Hub24, Judo Capital, Pro Medicus and Reliance Worldwide.
On the bond markets, 10-year Treasury yields rose 0.1% to 5.039%, while two-year rates fell 0.2% to 4.601%.
