The price of oil has risen since the US and Israel launched the war against Iran on February 28. This raises concerns in the market that the US's already stubbornly high inflation will be driven up further.
Market interest rates were pushed up on Tuesday. The yield on 30-year US Treasury bonds rose 0.06 percentage points to 5.18 percent - the highest level since 2007.
At the close of trading, the Dow Jones Industrial Average and the broad S&P 500 fell 0.7 percent, while the Nasdaq Composite Index lost 0.8 percent.
Major semiconductor companies, such as AMD, Broadcom and Qualcomm, fell 1.6–3.9 percent.
The largest, Nvidia, lost 0.8 percent a day before the company's quarterly report is expected.
A barrel of North Sea oil is trading at $111.40. Before the war, the price was around $70.
