01:32 PM EDT, 03/24/2026 (MT Newswires) -- US benchmark equity indexes were lower intraday, while oil prices jumped as optimism around a potential de-escalation in the ongoing Middle East conflict faded.

The Nasdaq Composite was down 0.8% at 21,764.4 after midday Tuesday, while the S&P 500 fell 0.3% to 6,560.6. The Dow Jones Industrial Average lost 0.1% to 46,174.9. Among sectors, communication services saw the biggest drop, while energy led the gainers.

West Texas Intermediate crude soared 5.2% to $92.67 per barrel, while Brent advanced 4.8% to $100.48.

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 to "sustainable" proposals to end the conflict, 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.

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

On Monday, crude futures posted a sharp pullback after US President Donald Trump delayed a planned attack on Iran's energy infrastructure amid ongoing talks. Tehran denied it was in negotiations with Washington.

US Treasury yields were higher intraday Tuesday, with the 10-year rate up 8.4 basis points at 4.42% and the two-year rate jumping 12.2 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 10%, 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 were down 7.1% intraday Tuesday.

CF Industries ( CF ) shares rose 5.9%, among the top gainers on the S&P 500, as HSBC raised its price target on the stock to $130 from $91.

GameStop ( GME ) , AAR (AIR) and KB Home ( KBH ) are scheduled to report their latest quarterly financial results after the closing bell Tuesday, along with others.

Gold was up 0.5% at $4,427.70 per troy ounce, while silver rose 1.1% to $70.11 per ounce.