Oil Price Surge Weighs on Wall Street Amid Inflation Fears

U.S. stocks dipped on Tuesday as rising oil prices weighed heavily on Wall Street following a three-day weekend.

The S&P 500 fell by 0.2%, while the Dow Jones Industrial Average dropped by 477 points, or 0.9%, to $97.85 per barrel of Brent crude.

Increased fighting in the Middle East has pushed oil prices up from roughly $72 over the last two months, eroding hopes for a deal to reopen the Strait of Hormuz to oil tankers and restore global oil flows.

The upcoming reports on inflation at the wholesale level and consumer-level inflation are expected to show acceleration and easing respectively, but may not be enough to sway the Federal Reserve's decision on interest rates next week.