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.

Tokyo’s Nikkei 225 index rose 0.6% after the Bank of Japan opted to keep its key interest rate unchanged. It’s been gradually raising its rate from near zero and cutting back on its purchases of Japanese government bonds to help counter inflation.

The risk of Iran closing the Strait of Hormuz is real and could disrupt 20% of global oil supply. Click here for more information on Market Outlook.

We also discuss how China is maintaining a strong grip over rare earths, despite U.S. and China trade officials striking a deal last week in London.

Stock futures rebounded slightly early Monday as the spike in oil prices due to the escalating conflict between Israel and Iran eased for a moment. Stock gains were muted as investors remained concerned about the rising geopolitical risk to the global economy.

Critical energy infrastructure in Israel and Iran has not escaped unscathed from the first few days of the countries' escalated conflict. Worst-case scenarios have yet to be realized, but the war is already having a notable impact on energy production and exports in both countries.