U.S. stocks fell as renewed hostilities between the U.S. and Iran near the Strait of Hormuz caused oil prices and long-term Treasury yields to rise.

The Dow Jones Industrial Average fell 374.09 points, or 0.70%, to 53185.90. The S&P 500 lost 25.62 points, or 0.33%, to 7686.14 and the tech-heavy Nasdaq Composite declined 31.53 points, or 0.12%, to 26370.89.

The yield on the policy-sensitive two-year Treasury was unchanged. The yield on the 10-year Treasury note rose 0.036 percentage point to 4.757%. The 30-year bond yield gained 0.041 percentage point to 5.248.

Oil futures rose $2.36 or 2.8%, to $85.76 a barrel. The U.S. struck Iranian rocket launchers which it said were preparing to mine the contested strait. Iran struck back at a U.S. base in Jordan.

Recently, long-term Treasury yields have tracked oil prices, a critical factor in inflation trends. Higher yields are likely to cause further increases in mortgage and loan rates. Speaking on CNBC, Goldman Sachs Chief Executive David Solomon said the recent surge in long-term Treasury rates bore watching but was not yet an urgent matter.