US stock futures fell with investors on edge as Israel and Iran continued to trade strikes against a backdrop of shifting US trade policy and stubborn interest rates.

Follow all the latest U.S. market action for Tuesday here as stocks sit just shy of record highs despite turmoil in the Middle East and the Federal Reserve begins its two-day policy meeting.

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

The sharp pullback came as global investors reacted to headlines of escalating military conflict in the Middle East, with Israel and Iran trading lethal missile barrages. US crude climbed 1.21% to $72.64 per barrel, extending gains from last week as markets priced in potential disruptions to energy supply chains.

The Dow Jones dropped Tuesday as Trump left the G7 summit to deal with the Israel-Iran conflict. Circle stock surged.

The major U.S. stock market indexes opened lower on Tuesday as investors watched for developments in the Middle East. Tensions escalated last week after Israel bombed Iran's nuclear facilities and Iran retaliated.

The iconic Dow Jones is the worst-performing of the three major U.S. indexes this year; it is slightly in the red as of this writing. Microsoft (NASDAQ: MSFT) and Coca-Cola (NYSE: KO) are among those corporations on the Dow Jones that are breaking ranks (so to speak) with their Dow peers.