Stocks fell and oil rose on Tuesday as investors assessed the stalemate in the Iran conflict and worried the AI boom was losing momentum, while the dollar climbed.
The U.S. was reviewing Tehran's latest proposal to resolve the war. A U.S. official said President Donald Trump was unhappy with the plan as it did not address Iran's nuclear program.
The two-month-long conflict is at an impasse and energy and other supplies are still failing to cross through the critical Strait of Hormuz, pushing oil prices above $110 a barrel on Tuesday.
Brent crude oil rose 3% to $111.40 a barrel, a three-week high, while U.S. oil was up 3.8% at $100.
At the same time, concerns that the AI boom may be slowing weighed on tech stocks, dragging down futures for the S&P 500 and Nasdaq Composite. Investors are now focused on upcoming earnings reports from major tech companies to assess whether the AI-driven rally can continue.
Overall, markets are being shaped by a mix of geopolitical tensions, rising energy prices, and doubts about the sustainability of AI-driven growth.