Australian shares are poised to rise on Wednesday as soaring oil prices, triggered by stalled flows through the Strait of Hormuz and Iran-related supply disruptions, boost energy sector gains and global market optimism.

Overnight, the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average rose 2.9%, 3.8%, and 2.5%, respectively.

In the macroeconomy, Australian industry conditions have worsened in March as companies grapple with fuel shortages and cost-pressures across the economy amid conflicts in West Asia, Australian Industry Group said Wednesday.

Australian manufacturing slipped into contraction in March, with falling new orders, production declines, and the sharpest rise in input costs in over three years as global uncertainty and the Middle East conflict weighed on business confidence, according to a survey by S&P Global published Wednesday.

Australia's building approvals report is due at 11:30 am Sydney time.

In corporate news, Star Entertainment Group (ASX:SGR) completed the disposal of its interest in Destination Brisbane Consortium (DBC), the owner of the Queen's Wharf Brisbane Integrated Resort, to joint venture partners Chow Tai Fook Enterprises and Far East Consortium International.

Perenti (ASX:PRN) appointed Vanessa Torres as chief executive, succeeding Mark Norwell, effective June 1.

Australia's benchmark index rose 0.3% or 20.8 points to close at 8,481.80 on Tuesday.