US Stocks Slip as Iran Tensions Drive Oil Prices Higher

US equities retreated on Monday as tensions between the US and Iran escalated, lifting oil prices and government bond yields.

The S&P 500 eased 0.33 per cent to 7,686.14, while the Dow Jones Industrial Average fell 374.09 points, or 0.7 per cent, to 53,185.90.

Crude prices surged after US Central Command confirmed it struck two rocket launchers on Iran's Larak Island on Sunday, prompting Iranian media reports of attacks on US bases in Jordan.

West Texas Intermediate rose 2.83 per cent to settle at $85.76 a barrel, while Brent increased by 2.71 per cent to $90.49.