Wall Street has closed sharply lower with AI stocks again weighing on the market while escalating tensions in the Middle East are casting doubt on when United States and Iran can reach a deal to reopen the Strait of Hormuz to oil tankers.

The Australian sharemarket opened sharply lower on Tuesday as local investors caught up with Wall Street’s sell-off on Friday and a flare-up of fighting between Israel and Iran.

Wall Street has closed sharply lower with AI stocks again weighing on the market while escalating tensions in the Middle East are casting doubt on when United States and Iran can…