“The linkage between movement in the price of West Texas Intermediate Crude and popular market indexes is incredibly tight,” said Front. “It’s almost tick for tick. And it reflects a degree of speculation and uncertainty that we haven’t seen in a long time, if ever.”

The US and Israel are conducting their most intense day of attacks yet against Iran and won’t give up until the Islamic Republic is beaten, the Pentagon said, striking a more aggressive tone after Trump hinted on Monday the war in Iran could be nearing a conclusion.

“The conflict in the Middle East and related headlines are still the major source of fluctuations in markets, with equities, oil, and rates all spending another day trying to find equilibrium,” said Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute. “We see the conflict as lasting weeks/months and not changing the forward outlook meaningfully.”

Meanwhile, traders are also readying themselves for a fresh look at inflation with the consumer price index, which is due Wednesday. Also expected this week is a readout on the personal consumption expenditures price index, which is the Federal Reserve’s preferred inflation gauge.