Australia’s S&P/ASX 200 fell 31 points, or 0.4%, to close at 8,671 on Tuesday, marking a third consecutive session of declines as waning expectations for a U.S.–Iran peace deal and softer U.S. futures weighed on risk appetite. President Donald Trump warned the ceasefire was “on life support” after rejecting Tehran’s counterproposal, heightening concerns over a prolonged period of Middle East instability. Domestically, sentiment was further pressured by the April business confidence survey, which remained deeply negative despite a modest improvement from March’s record low. However, losses were partly limited by optimism ahead of the 2026/27 Federal Budget, which is expected to set out reform measures, cost-of-living support, and tax changes—potentially including adjustments to negative gearing—alongside projections for a smaller deficit. Most sectors finished in the red, led by commercial services, consumer stocks, financials, and healthcare. The big four banks slid between 1.4% and 2.4%, while Xero (-3.5%), REA Group (-2.7%), and Coles (-2.6%) were among the notable underperformers.