US stocks slipped on Tuesday amid dwindling hopes for a quick resolution to Israel-Iran hostilities, as President Trump heightened his rhetoric against Iran and called for an “unconditional surrender.”

In a post on Truth Social, Trump said the US knows where the country’s leader is hiding, adding, “He is an easy target, but is safe there — We are not going to take him out (kill!), at least not for now. But we don’t want missiles shot at civilians, or American soldiers. Our patience is wearing thin.”

Stock losses picked up steam shortly following the post. The Dow Jones Industrial Average (^DJI) ended the day down around 0.7% or about 300 points. The benchmark S&P 500 (^GSPC) dipped more than 0.8% while the tech-heavy Nasdaq Composite (^IXIC) pulled back over 0.9%.

Overall, US stocks have so far proved relatively resilient amid the conflict. The major gauges ended higher on Monday after a report that Iran sought a ceasefire and a return to nuclear program negotiations.

But new reports on Tuesday indicated that the US is contemplating military strikes against Iran as Trump met with his national security team at the White House, heightening concerns about the possibility of a full-scale regional conflict.

Oil prices jumped over 4% as investors weighed the stream of remarks and reports, with Brent futures (BZ=F) settling above $76.50 a barrel and West Texas Intermediate (CL=F) crude hitting nearly $75.

At the same time, Wall Street is also grappling with concerns over Trump’s trade policy and the direction of US interest rates. As the date for lifting the pause on Trump’s sweeping tariffs approaches, US officials have used the G7 summit to pursue trade deals.

The first completed deal emerged Monday, when Trump and British Prime Minister Keir Starmer signed off on the US-UK trade pact agreed in May. So far, other deals have proved elusive.

Read more: The latest on Trump’s tariffs

Meanwhile, in the week’s key data release, US retail sales fell 0.9% in May, more than economists expected, as consumers pulled back from a pre-tariff splurge.

Wall Street is looking to the Federal Reserve’s two-day meeting that starts on Tuesday for clues to whether policymakers still want to cut interest rates twice in 2025, given recent signs of cooling inflation. The Fed is expected to hold rates steady in its decision on Wednesday.

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