Oil Gains Weigh on Stocks Amid Middle East Tensions

US stocks fell in midday trading on Wednesday as crude oil prices rose by 1% and government bond yields increased. Investors were watching developments in the Middle East, which may impact global markets.

The rise in oil prices benefited energy stocks, with both the iShares US Energy ETF and the Energy Select Sector SPDR Fund up about 1%. Higher crude can lead to better near-term cash flow for producers.

However, rising yields tend to pressure growth stocks, which rely on profits far into the future. This is why mega-cap tech-heavy benchmarks often lag when rates climb.