Oil Price Volatility Weighs on US Stocks Amid Iran War Uncertainty

U.S. stocks slipped further from their records on Tuesday as oil prices continued to swing due to uncertainty about when crude can flow freely again after the war with Iran.

The S&P 500 fell 0.3% for a second modest drop since setting its all-time high last Friday, while the Dow Jones Industrial Average dipped 184 points or 0.3%, and the Nasdaq composite sank 0.6%. The action was stronger in the oil market, where the price for a barrel of Brent crude briefly jumped above $90 before falling back below $87.

Oil prices have been erratic since the United States and Israel attacked Iran in late February, which led to the closure of the Strait of Hormuz and kept much of the world's oil pent up in the Middle East. Last month alone, Brent's price veered between $72 and $102 per barrel.

The increased oil prices have made inflation worse, sending the average cost for a gallon of regular gasoline to $4.01 according to AAA, up from less than $3.14 a year ago but down from last week's nearly $4.09.