U.S. stocks retreated Monday as early gains faded amid rising geopolitical tensions between the United States and Iran, elevated oil prices and investor caution ahead of key corporate earnings reports.

Iranian President Masoud Pezeshkian described the situation with the United States as a full-scale war, while Houthi rebels announced plans to blockade Saudi ports. Brent crude futures rose 1.3 percent to settle at $89.22 a barrel after briefly exceeding $90. U.S. gasoline prices climbed above $4 a gallon.

The S&P 500 lost 0.2 percent to close at 7,443. The Dow Jones Industrial Average fell 0.6 percent to 51,839. The Nasdaq Composite declined less than 0.1 percent to 25,508.

Market participants remained uncertain whether upcoming technology company results would justify high valuations linked to artificial intelligence spending.