Stock futures lost ground Tuesday morning, while oil prices surged, as investors monitored developments in the escalating conflict between Israel and Iran.

Investors eye the latest on the Iran Israel conflict, oil and U.S. stocks in crosshairs. The Federal Reserve begins their two-day meeting. FOX Business is providing real-time updates on the markets, c

Oil prices leaped, and stocks slumped on worries that escalating violence following Israel’s attack on Iranian nuclear and military targets could damage the flow of crude around the world, along with the global economy.

The rally came as oil prices retreated from recent highs amid reports that Iran seeks to de-escalate tensions with Israel.

Oil prices have risen in response to the Israel-Iran war, bringing them nearly back to the levels where they traded before the Liberation Day tariffs were announced on April 2. Oil stocks are trailing well behind.

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Relative calm returned to global markets, with stocks climbing and oil sinking alongside gold as fears subsided that Israel’s war against Iran would escalate into a wider conflict. News reports that Tehran wants to restart talks over its nuclear program also fueled risk-on sentiment.