Stocks fell, energy prices rose, and bond yields jumped for a second day on Tuesday as the escalating conflict between Iran and the US and its allies continued to roil global markets.

Markets pared the most dramatic losses after President Donald Trump said the US would escort oil tankers through the Strait of Hormuz, a key shipping lane that handles 20% of global oil flows.

The comments caused stocks to trim losses and for oil prices and bond yields to pull back from earlier highs.

Here were the major market moves on Tuesday:

Stocks

US stock trading was highly volatile, with the Dow down as much as 1,200 points before clawing back most of that loss.

Here’s where major indexes stood at the 4 p.m. ET closing bell on Tuesday:

S&P 500: 6,816.63, down 0.94%

Dow Jones Industrial Average: 48,501.27, down 0.83 (-403.51 points)

Nasdaq Composite: 22,516.69, down 1%

Trump said the US would escort oil tankers through the Strait of Hormuz, easing some of investors’ worries about the oil market

Traders see the possibility that the conflict drags on after the uncertain timelines given by the administration. Donald Trump said the war could last up to five weeks, but could go on “far longer.”

Deutsche Bank researchers wrote in a morning note that the S&P 500 has only fallen more than 15% when an oil shock has caused at least one of three things: at least a 50% to 100% spike in oil prices lasting several months, a significant economic slowdown, or a hawkish response from central banks to combat inflation.

“The critical question over the days ahead will be if one of these boxes is ticked,” they wrote.

Global stock markets also tumbled. Hong Kong’s Hang Seng closed 1% lower, while South Korea’s KOSPI tumbled 7%, its sharpest one-day drop in 19 months.

In Europe, Germany’s DAX was trading 3.5% lower, while Britain’s FTSE 100 and France’s CAC 40 were down around 3%.

Energy prices

Crude oil prices rose again, but pared the deepest losses late in the day after Trump said the US Navy will escort oil tankers through the Strait of Hormuz, easing investors’ concerns about more significant disruptions to supply.

Brent crude and West Texas Intermediate were up 2% and 4% to around $78 and $74 a barrel, respectively, after being up as much as 7% earlier in the day.

Other energy commodities also rose on Tuesday.

One of the most striking moves was a 42% rise in futures for Dutch TTF, the benchmark price for European natural gas, to over 60 euros per megawatt-hour.

The surge was fueled by Qatar suspending production at the world’s largest LNG export plant after an Iranian drone strike, as the country accounts for 20% of global supply.

“The suspension of LNG production in Qatar is a particularly sensitive pressure point and has seen gas prices surge globally,” he continued.

“The longer oil and natural gas prices remain elevated, the greater the risk of a meaningful impact on inflation, which could mean higher interest rates, an event that’s typically negative for equity markets,” he added.

Bonds

Treasury yields spiked again on Tuesday. That’s an unusual move, given that traders often pile into US government debt as a safe haven during times of uncertainty. However, markets are also eyeing the expectation for higher inflation as a result of the war, which could keep rates elevated as the Federal Reserve tries to keep a lid on prices.

However, yields also pulled back after Trump’s comments on the US escorts of oil through the Strait of Hormuz.

The 10-year Treasury yield ended higher by about one basis point at 4.06%, after rising to as high as 4.1% earlier in the day.