US stock indices fell on Monday as higher oil prices added to inflation risks and consolidated the recent concerns of an incoming rate hike by the Federal Reserve. The S&P 500 and Nasdaq 100 fell 0.3%, while the Dow dropped over 0.5%. Wholesale prices for oil and products gained traction after the US and Iran delivered fresh strikes against each other. The developments followed their respective signals of blockades for tankers and vessels in the Persian Gulf, prolonging the suspension of exports from the region. Yields across the curve rose and equities for credit-sensitive sectors were under pressure. Microsoft, Alphabet, and Amazon dropped more than 1%. Banks and credit providers also dropped with Citi, Morgan Stanley, and Amex losing 1%. Meanwhile, Nvidia was flat after announcing a $3.5 billion stake in MediaTek, increasing its net of exposure in the global chip production and AI infrastructure. Broadcom was also flat ahead of its earnings this week.