NEW YORK (AP) — U.S. stocks and oil prices flip-flopped Tuesday as uncertainty rose about what will happen following a two-week ceasefire in the war with Iran, which is set to expire Wednesday.

The S&P 500 erased an early rise to fall 0.6% after U.S. Vice President JD Vance called off a trip to Pakistan, where he was expected to lead U.S. negotiators in talks with Iran to extend the ceasefire.

The Dow Jones Industrial Average dropped 293 points, or 0.6%, after erasing an earlier gain of 400 points, while the Nasdaq composite slipped 0.6%.

Oil prices also wavered, and the price for a barrel of Brent crude went from less than $95 to roughly $100 during the day. It settled at $98.48, up 3.1%.

The moves were mostly more modest than the vicious swings that rocked Wall Street earlier in the war, when the price for a barrel of Brent crude briefly topped $119 and the S&P 500 dropped nearly 10% below its prior all-time high. The U.S. stock market remains near its most recent record, which was set Friday, indicating optimism still remains in financial markets that the United States and Iran will avoid a worst-case scenario for the economy.

“It’s become cliched to say that the economic hit will depend on the duration of the Middle East conflict, but that cliché does ring true,” according to Brian Jacobsen, chief economic strategist at Annex Wealth Management.

Much of the tension in financial markets has focused on what will happen to the Strait of Hormuz, a narrow waterway off Iran’s coast that oil tankers use to exit the Persian Gulf. A long-term closure would keep crude oil pent up in the gulf and away from customers worldwide.

Helping to limit Wall Street’s losses were UnitedHealth Group and other big companies that reported bigger profits for the latest quarter than analysts expected.

UnitedHealth jumped 7% after also raising its forecast for profit over the full year of 2026. That’s big because stock prices tend to follow the path of corporate profits over the long term, and it’s a double-plus when companies not only top earnings estimates but also forecast better growth ahead.

Quest Diagnostics rose 4.4% after likewise reporting fatter profit for the latest quarter than analysts expected while also raising its profit forecast for the full year.

Source: WPLG