Wall Street Stocks Slide Below All-Time Highs Amid Oil Price Volatility

US stocks are hovering below their all-time highs as oil prices continue to swing wildly due to uncertainty over when crude will flow freely again after the war with Iran. The S&P 500 fell 0.3% on Tuesday, moving further away from its record set just days ago. Brent crude briefly jumped above $90 in the morning before falling back below $87.

Higher oil prices are exacerbating inflation woes, sending gasoline prices to $4.01 a gallon, according to AAA. This has Wall Street's attention focused on Wednesday's inflation report, which is expected to show that inflation decelerated to 3.4% in July from 3.5% in June.

The Federal Reserve is split on whether to raise interest rates to combat inflation, a move that could slow the economy but also undercut stock prices and other investments. Traders are betting on a coin flip's chance of a rate hike at the Fed's next meeting in September.