04:42 PM EDT, 03/24/2026 (MT Newswires) -- US equities fell Tuesday following a relief rally in the previous session, while oil prices resumed their advance as the prospects of a de-escalation in the ongoing Middle East conflict remained low.

The Nasdaq Composite declined 0.8% to 21,761.9 while the S&P 500 dropped 0.4% to 6,556.4. The Dow Jones Industrial Average lost 0.2% to 46,124.1. Most sectors ended in the green, led by energy's 2.1% gain, while communication services saw the biggest drop.

West Texas Intermediate crude was last up 4.3% at $91.91 a barrel, while Brent advanced 3.8% to $103.74.

On Monday, crude futures posted a sharp pullback, while Wall Street's major indexes jumped as US President Donald Trump delayed a planned attack on Iran's energy infrastructure amid ongoing talks.

"It is likely that Qatar, Turkey, Pakistan, and Oman have been passing messages between Tehran and Washington, but we are skeptical that we are just days away from a lasting deal," Helima Croft, head of global commodity strategy at RBC Capital Markets, said in a report e-mailed to MT Newswires.

Pakistan has offered to host talks between the US and Iran, Pakistani Prime Minister Shehbaz Sharif said in a post on X Tuesday.

A deal to stop the US-Israel war with Iran "does not appear to be tangible right now," CNN reported Tuesday, citing an Israeli official. There has been "outreach" between the US and Iran, and Tehran is willing to listen, the news outlet reported, citing an Iranian source.

Israel launched new strikes on Iran, while an Iranian missile slammed into a Tel Aviv street, NBC News reported. Separately, The Wall Street Journal reported that Saudi Arabia and the United Arab Emirates have taken steps toward joining the Iran war.

"Israel's ongoing attacks, combined with reports that Saudi Arabia and the (UAE) may join the conflict, point to a risk of further escalation," Saxo Bank said in a report.

Pentagon is preparing to deploy about 3,000 soldiers to the Middle East to support operations in Iran, The Journal reported, citing two US officials.

US Treasury yields were higher, with the 10-year yield last up 5.7 basis points at 4.41% and the two-year yield jumping 8.6 basis points to 3.95%.

In economic news, US private-sector output growth hit an 11-month low in March as the Middle East conflict boosted input costs for businesses, S&P Global's ( SPGI ) data showed.

"The flash (purchasing managers' index) survey data for March signal an unwelcome combination of slower growth and rising inflation following the outbreak of war in the Middle East," S&P Global Market Intelligence Chief Business Economist Chris Williamson said. "Companies are reporting a hit to demand from the additional uncertainty and cost of living impact generated by the conflict."

In company news, Estee Lauder ( EL ) shares sank 9.9%, the second-worst performer on the S&P 500. The cosmetics company said late Monday it's in discussions with Spanish beauty and fashion group Puig to possibly combine their businesses.

A potential merger between Estee Lauder ( EL ) and Puig makes strategic sense, as it could allow the cosmetics company to fill the fragrance gap in its portfolio, RBC Capital Markets said in a note. The potential deal would create a $40 billion luxury beauty company, Reuters reported.

Etsy ( ETSY ) is more exposed to risks from rising oil and gas prices than other online marketplaces, Oppenheimer said in a note. The e-commerce platform's shares slumped 5.8%.

CF Industries ( CF ) shares climbed 5.6% as HSBC raised its price target on the stock to $130 from $91.

Gold was down 0.2% at $4,398.60 per troy ounce in Tuesday late-afternoon trade, while silver rose 0.4% to $69.60 per ounce.