US stocks end lower as Treasury yields rise

US stocks traded lower Tuesday as Treasury yields climbed, while oil prices fell and investors monitored diplomatic efforts to resolve the war with Iran.

The Dow Jones industrial average fell 131.59 points, or 0.26%, to 51,349.92.

The S&P 500 declined 12.85 points, or 0.17%, to 7,670.84, while the Nasdaq Composite slipped 22.84 points, or 0.09%, to 26,797.54.

The yield on the benchmark 10-year US Treasury note rose 1.1 basis points to 5.253%.

In energy markets, the international Brent crude prices fell 2.8%, or by $2.94, to $102.35 per barrel, while West Texas Intermediate crude futures dropped $3.5 or 3.8%, to $89.

Oil prices retreated amid signs of improving Middle Eastern supplies, including the resumption of Saudi Arabia's oil exports through its East-West pipeline following repairs to damage from drone strikes. Increased tanker movements through the Strait of Hormuz also helped ease immediate supply concerns.

Diplomatic uncertainty persisted. Iranian Foreign Minister Abbas Araghchi met Qatari mediators in New York to discuss reopening the waterway.

Meanwhile, Washington imposed sanctions on 10 individuals and entities based in Iran, Hong Kong and Pakistan, accusing them of procuring weapons and components for Iran's Defense Ministry. The measures formed part of the Trump administration's economic pressure campaign against Tehran as renewed diplomacy remained uncertain.

European stocks close mixed

European stock markets ended mixed, with gains in Germany and Italy offset by declines in the UK, France and Spain.

The pan-European STOXX 600 index slipped 0.09% to 638.08.

Germany's DAX rose 0.10% to 25,399.21, while Italy's FTSE MIB gained 0.09% to 51,804.94.

The UK's FTSE 100 fell 0.45% to 10,636.71 and France's CAC 40 declined 0.53% to 8,035.87.

Spain's IBEX 35 lost 0.42% to finish at 19,517.50.

The euro weakened 0.28% against the dollar to $1.134, its lowest in around three months.