Stocks Decline as Iran Jitters Spur Rally in Oil: Markets Wrap

A fresh bout of volatility rattled markets, with stocks falling as oil rose on concern about an escalation of the conflict in the Middle East that could prolong the Strait of Hormuz closure, worsening energy disruptions.

The standoff drove Brent above $105 on worries that peace talks have stalled, rhetoric is amping up and military threats are increasing. A rally in the S&P 500 paused, with the index dropping as much as 1.3% before paring its decline. In late hours, Intel Corp. surged on a strong outlook, fueling gains in chipmakers. The group notched a 17th straight advance in regular trading.