Stocks Slip as Oil Prices Continue Volatile Streak

U.S. stocks pulled back from their records on Tuesday as oil prices continued to fluctuate due to uncertainty over Iran's impact on global crude supply.

The S&P 500 index dropped 0.3% for a second modest decline since hitting an all-time high last Friday, while the Dow Jones Industrial Average fell by 184 points (0.3%) and the Nasdaq composite sank 0.6%.

Brent crude prices briefly surged above $90 per barrel in the morning before settling at $88.91, up 1.4% from Monday's close.

The recent volatility in oil markets has led to concerns about inflation, with gasoline prices reaching a new high of $4.01 per gallon, according to AAA data.

Investors are eagerly awaiting the latest U.S. inflation reading on Wednesday, which is expected to show that prices decelerated to 3.4% in July from 3.5% in June.

The Federal Reserve's decision on whether to raise interest rates will be closely watched, as higher rates could help curb inflation but also slow the overall economy and impact stock prices.