US stocks closed lower on Tuesday as rising energy prices clouded the outlook for corporate margins and increased concern that interest rates could remain higher. The S&P 500 fell 0.6%, the Nasdaq dropped 0.3% and the Dow shed 628 points. New strikes between the US and Iran heightened fears of prolonged disruption to fuel exports from the Persian Gulf, while Houthi attacks damaged Saudi energy infrastructure and reduced its capacity. Borrowing costs for US companies also rose amid hawkish signals from the Bank of Japan and likely Japanese sales of US Treasuries to support the yen. Credit-sensitive software stocks weakened, with Microsoft down 1.1% and Palantir falling 2.3%. Amazon declined 0.6% ahead of a sterling bond offering, as AI companies increasingly borrow in foreign currencies while dollar bond markets absorb a surge in AI-related debt supply. Oracle gained 2.4% ahead of earnings due this week. Traders are also awaiting key inflation data scheduled for later this week.