Iran War Escalation, Oil Spike Rattle Wall Street: What's Moving Markets Tuesday?

A wave of selling gripped Wall Street on Tuesday as the widening war between the U.S., Israel and Iran showed no sign of abating, driving crude oil sharply higher.
Drone strikes hit the US Embassy in Riyadh overnight, and the State Department ordered evacuations at facilities in Bahrain, Iraq, and Jordan. The reported potential closure of the Strait of Hormuz — through which roughly 20% of global oil flows — is the dominant market narrative of the session.
The West Texas Intermediate light crude jumped 6.4% to $75.8 a barrel, on pace for the sharpest 2-day rally since March 2022,. US natural gas rose 6.3% to $3.15, while European gas prices have almost doubled in two days.
Speaking alongside German Chancellor Friedrich Merz in the Oval Office, President Donald Trump stated that Iran no l