The Dow Jones industrial average and broad-based S&P 500 index fell 0.3 percent, while the tech-heavy Nasdaq composite index fell 0.6 percent.
Oil futures prices are rising as the US and Iran continue to fail to reach a deal on the war. A barrel of North Sea oil costs $89.1 after rising 1.6 percent during the day.
Market interest rates in the US are also rising as the results of negotiations are delayed.
Concrete progress is likely required for interest rates to fall significantly and stock prices to rise further, says José Torres, economist at online broker Interactive Brokers.
Rising energy prices are increasing fears of policy rate hikes.
Investors are also cautious ahead of Wednesday's consumer price index, which could signal inflation, increasing interest rate fears.
