Wall Street’s main indexes have fallen after US President Donald Trump rejected an Iranian proposal to end the conflict, leading to a spike in crude prices that revived inflation worries and drove Treasury yields higher, Reuters notes.

Limiting declines was Nvidia’s 2.1pc gain after the chip giant announced a $150 billion share repurchase authorisation, making it the company’s biggest ever increase in share buybacks on record.

Crude prices jumped 3pc to around $107-a-barrel and weighed on Treasuries, sending longer-dated yields to fresh multi-decade highs.

“Energy has been the one consistent upward pressure on inflation, and anything that continues to put pressure on inflation is going to be something that motivates the Fed to raise rates,” Art Hogan, chief market strategist at B. Riley Wealth.

At 11:50am ET, the Dow Jones Industrial Average fell 384.11 points, or 0.74pc, to 51,446.37, the S&P 500 lost 64.36 points, or 0.83pc, to 7,679.05 and the Nasdaq Composite lost 268.66 points, or 0.99pc, to 26,800.06.