Oil Price Spike Weighs on Wall Street Ahead of Key Inflation Reports

U.S. stocks fell on Tuesday after the latest fighting in the war with Iran pushed oil prices higher.

The S&P 500 sank 0.6%, while the Dow Jones Industrial Average dropped 628 points, or 1.2%, and the Nasdaq composite dipped 0.3%.

Rising oil prices have worsened worries about high inflation, which will be reflected in two key reports later this week: the August report for wholesale inflation on Thursday and the consumer price index update on Friday.

Economists expect the wholesale inflation rate to accelerate to 5.4% from 4.7% in July, while the consumer price index is expected to ease slightly to 3.3% from July's 3.4% inflation rate.