The Dow Jones industrial average fell 1.2 percent, the broad-based S&P 500 fell 0.6 percent and the tech-heavy Nasdaq composite index lost 0.3 percent.
In addition to the continued attacks in the Middle East, the market is worried by new US inflation figures due on Friday, which are the last important data release before the Federal Reserve's meeting next week. The probability of a rate hike is currently 60 percent, according to research firm CME FedWatch.
Chipmaker Qualcomm bucked the trend in Tuesday's trading after the company announced a partnership with Amazon to expand AI infrastructure. The stock rose 3.2 percent.
Processor maker Intel's shares rose 9.1 percent after reports in Digitimes that further price increases were expected.
