Oil jumps above $116 as Trump's Hormuz deadline approaches

Oil prices jumped and stocks tumbled Tuesday after the U.S. launched fresh strikes on Iran's Kharg Island and Trump's deadline for Hormuz to reopen approached.

Oil prices jumped and stocks tumbled Tuesday morning, as the United States launched new strikes on Iran's Kharg Island and President Donald Trump's 8 p.m. ET deadline to reopen the Strait of Hormuz approached without a clear resolution.

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The price of U.S. crude oil jumped more than 4% to $116 per barrel. International Brent crude oil rose to nearly $111 per barrel.

Stocks, meanwhile, dropped at the opening bell. The S&P 500 fell 0.4% and the Nasdaq Composite dropped 0.8%. The Dow fell 275 points or 0.5% and the Russell 2000 index, which tracks smaller companies, fell 0.4%.