Australian shares experienced a slight decline on Tuesday, with the S&P/ASX 200 index closing 0.2% lower at 8,680.50. This follows the Reserve Bank of Australia's (RBA) decision to raise its cash rate by 25 basis points to 4.35%, marking the third rate hike this year. The central bank's move was influenced by ongoing inflationary pressures and a surge in oil prices due to geopolitical tensions in the Strait of Hormuz, which may remain closed until early 2027. Financial stocks were particularly affected, with Westpac, the second-largest home lender in Australia, reporting disappointing first-half profits and warning of increased costs for mortgage and business customers. The mining sector also faced losses, with major companies like BHP and Rio Tinto seeing declines. Despite the overall downturn, energy and technology stocks managed to gain, reflecting a mixed market response to the RBA's actions and the broader economic outlook.