Stocks lost ground in early trading Tuesday, while oil prices moved higher, as investors monitored developments in the escalating conflict between Israel and Iran and digested disappointing economic data.

The spiraling Israel-Iran conflict has conjured painful memories of oil shocks from past Middle East wars and boosted global crude prices. The rally extended Tuesday, pushing benchmark U.S. futures about 2% higher,

The ECB needs "agile pragmatism more than ever", Villeroy added. Villeroy added that the ECB also needed to take into account the euro's appreciation in recent weeks. "We should incorporate this analysis of the exchange rate in our monetary policy decision."

Never try and predict what the price of oil is going to be, because there’s one sure thing: You’re going to be wrong,” says Baker Hughes CEO Lorenzo Simonelli.

Blasts have been heard in Tehran and sirens have sounded in Israel as US president convenes National Security Council.