Stocks fall on Tuesday after ending shy of record highs as investors monitor turmoil in the Middle East and the Federal Reserve begins its two-day policy meeting.

The sharp pullback came as global investors reacted to headlines of escalating military conflict in the Middle East, with Israel and Iran trading lethal missile barrages. US crude climbed 1.21% to $72.64 per barrel, extending gains from last week as markets priced in potential disruptions to energy supply chains.

Stocks fell on Tuesday as Trump signaled that the U.S. could enter the war between Israel and Iran.

U.S. President Donald Trump is weighing a military strike on Iran, while demanding the country’s leader Ayatollah Ali Khamenei “surrender.”

US stocks are down after Trump had harsh words for Iran, saying he would not target the country's leader "for now." Fed's also meeting on policy.

Stock indexes closed higher after last week's losses and a barrel of oil got $1 cheaper on Monday as investors took heart from reports that Iran was seeking to end hostilities with Israel, and stayed confident in their predictions for a busy week of central bank meetings.

U.S. stocks were sharply down Friday, after Israel launched strikes on Iran's nuclear sites. But major benchmarks were off their morning lows.