The oil rally and rising interest rates put pressure on Wall Street

Wall Street was weighed down by new US strikes on Iran and fears that higher energy costs will force the Fed to tighten monetary policy later this month.

The S&P 500, which broadly tracks large companies, fell 0.7 percent. The technology-focused Nasdaq weakened by 1.0 percent. The flagship Dow Jones index fell 0.8 percent.

The price of oil rose clearly after the new US strikes on Iran. The US Central Command said that the American forces struck the targets of the Iranian Revolutionary Guard.

President Donald Trump said the military action was in response to Iran’s attempt to plant mines in the Strait of Hormuz and Iran’s previous attacks on a military base in Jordan. Trump warned of further strikes if Iran retaliates. Iran, on the other hand, threatened the United States with severe punishment.

US WTI crude rose 5.7 percent to $90.62 a barrel. Brent crude rose 5.2 percent to close at $95.13 a barrel.

The interest rate on the US 10-year government bond rose to 4.80 percent.

Network equipment manufacturer on the New York Stock Exchange Nokian depository receipt, or ADR, fell 2.1 percent to $9.93.