Stocks resumed losses on Tuesday after erasing previous gains even though oil dropped despite increased tensions between the U.S. and Iran.
The S&P dropped 0.26% while the tech-heavy Nasdaq Composite fell further, 0.97% .
Oil dropped after President Donald Trump said a deal to end the war in Iran could happen in "two or three days."
Speaking to press after attending the NBC Finals in New York, Trump said the Strait of Hormuz would be reopened "immediately" after a deal, which he described as "very good" and claimed it will "not in any way allow nuclear weapons."
Brent crude, the international benchmark, dropped 2.92% and clocked in at $91.50 a barrel at 3:41 p.m. ET. West Texas Intermediate, the U.S. benchmark, did so by 3.41% and stood at $88.19 at the same time.
Prices remained lower even though Trump later said that Iran downed a U.S. helicopter and the country, "must, of necessity, respond to this attack."
"I have just been informed by our Great Military that last night the Iranians shot down one of our highly sophisticated Apache Helicopters while patrolling over the Strait of Hormuz. There were two pilots involved, both are safe and uninjured. Nevertheless, the United States must, of necessity, respond to this attack," Trump said in a social media publication.
The incident in question took place when the helicopter was patrolling the Strait of Hormuz, off the coast of Oman. U.S. officials told CNN that the helicopter was taken down by an Iranian drone.
The outlet went on to say that it was the first time an Apache helicopter went down since the war began in late February.
"The Soldiers were safely rescued within approximately two hours and are in stable condition," the U.S. Central Command said in a social media post.
CENTCOM spokesperson Capt. Timothy Hawkins said a U.S. Navy drone rescued the crew and took them to another location where they were later picked up by another helicopter
Iranian Foreign Minister Abbas Araghchi, on his end, reacted by saying that "foreign forces in proximity to our territory are at constant risk on account of their own human errors, plain accidents, or potentially being caught in crossfire."
"To reduce risk, the best solution is for foreign forces to exit, as soon as possible, an environment which will never be hospitable to a hostile presence. Iran prefers the language of diplomacy. However, as our Brave Warriors have shown to the world, we know how to speak other languages too."
