At the close, the Dow Jones industrial average had lost 0.6 percent, the broad S&P fell 0.4 percent, and the tech-heavy Nasdaq composite index closed down 0.1 percent.
Technology giant Amazon was down 1.4 percent, while chipmakers Broadcom and Micron Technology each closed down 3 percent.
The price of oil had risen slightly during the trading day, and a barrel of North Sea oil (Brent) was once again trading for over $100 per barrel.
Investors are weighing the risk that the Strait of Hormuz will remain closed if the conflict between the United States and Iran drags on. Trump has said he believes the war has a very good chance of coming to an end. However, Iran has not yet responded to the latest US peace proposal.
