The market remains on edge with the biggest fear a potential blockage of the Strait of Hormuz, which would lead prices to soar further. Almost a third of global seaborne oil trade moves through the Strait of Hormuz. So far, oil-exporting infrastructure has been avoided and there has been no blockage of the Strait of Hormuz.

Oil prices were stable on Monday after Iran's oil production infrastructure was excluded from intensification of military conflict with Israel, while the Strait of Hormuz remains open

About 21mn barrels of oil from Iran, Iraq, Kuwait, Saudi Arabia, Qatar and the United Arab Emirates pass daily through the narrow waterway separating the Islamic republic from the Gulf states, representing about one-third of the world’s seaborne oil supplies.

While Tehran has frequently threatened to block the waterway in response to military pressure or sanctions, the prospect becomes far more plausible if the conflict with Israel explodes into a full-scale war.

That sent the yield on the 10-year Treasury up to 4.43% from 4.36% late Thursday. Higher yields can tug down on prices for stocks and other investments, while making it more expensive for U.S. companies and households to borrow money.

U.S. stock futures slipped and oil prices rose on Tuesday, as investors were rattled by U.S. President Donald Trump's call for everyone to evacuate Tehran with the fifth-day of Israel-Iran fighting sowing fears of a broader regional conflict.