Oil Prices Fuel Inflation Worries as Stock Market Declines

The stock market took a hit on Tuesday as another round of U.S. military strikes on Iran sent oil prices soaring, exacerbating inflation worries and putting further pressure on bonds.

The S&P 500 index fell 0.7%, the Dow Jones Industrial Average dropped 0.8%, and the Nasdaq composite slid 1%.

The bond market sell-off deepened, with the yield on the 10-year Treasury rising to 4.79% from 4.75% late Monday.

The ongoing U.S.-Iran conflict has disrupted oil shipments through the Strait of Hormuz, driving up energy costs and fueling inflation.