At the close, the Dow Jones industrial average had lost 0.1 percent, while the broad S&P 500 index fell 0.2 percent and the tech-heavy Nasdaq composite index was unchanged.
The stock market mood was relatively good when trading began on Tuesday, but it changed when it became clear that the US Secretary of Energy's statement that a ship had been escorted through the Strait of Hormuz by the United States was not true.
The situation escalated a few hours later when media reports emerged that Iran had begun mining the strait.
In the wake of the developments, oil prices rose again, from a low of around $81 during the day to over $91 a barrel for Brent at 10 p.m. on Tuesday.
The declines also likely reflect market concerns about how long the US and Israel's war against Iran may last. The messages from President Donald Trump and his ministers regarding their goals and timeframe remain numerous and contradictory.
