Stocks lost ground in early trading Tuesday, while oil prices moved higher, as investors monitored developments in the escalating conflict between Israel and Iran and digested disappointing economic data.

Stock indexes closed higher after last week's losses and a barrel of oil got $1 cheaper on Monday as investors took heart from reports that Iran was seeking to end hostilities with Israel, and stayed confident in their predictions for a busy week of central bank meetings.

As Israel and Iran exchanged more attacks, stock markets mostly rose even as worries remained about possible oil supply interruptions.

The sharp pullback came as global investors reacted to headlines of escalating military conflict in the Middle East, with Israel and Iran trading lethal missile barrages. US crude climbed 1.21% to $72.64 per barrel, extending gains from last week as markets priced in potential disruptions to energy supply chains.

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NEW YORK (AP) — U.S. stocks are nudging lower on Tuesday, and oil prices are rising again. It’s a modest return to form for financial markets after worries had seemed to calm on Wall Street Monday.

Stocks fell and the price of oil spiked on Tuesday after a series of posts from President Donald Trump had Wall Street worried again about an escalation in the conflict between Israel and Iran. The Dow Jones Industrial Average fell 299 points,

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Stock futures rebounded slightly early Monday as the spike in oil prices due to the escalating conflict between Israel and Iran eased for a moment. Stock gains were muted as investors remained concerned about the rising geopolitical risk to the global economy.