US stock markets closed lower on Tuesday as a combination of inflation concerns, elevated oil prices, and an unresolved Iran situation weighed on investor sentiment. The yield on the 10-year US Treasury note climbed to its highest level in more than a year, adding further pressure on equities.

The S&P 500 fell 0.67% to close at 7,353.61. The Dow Jones Industrial Average slipped 0.65% to 49,363.88. The Nasdaq posted the sharpest decline among the major indices, dropping 0.84% to 25,870.71.