U.S. stocks retreated from their records Tuesday after Iran fired missiles into Israel, a sharp escalation of tensions in the Middle East that investors fear could lead to disruptions in the flow of oil.

Oil prices climbed about 3% on Tuesday after Iran fired a salvo of ballistic missiles at Israel in retaliation for Israel's campaign against Tehran's Hezbollah allies in Lebanon.

Iran’s attack on Israel is “justification for concern” in the oil markets, but some analysts aren’t convinced that the move will lead to any significant, long-lasting disruptions to global crude supplies.

Iran said early on Wednesday that its missile attack on Israel was finished barring further provocation, while Israel and the U.S. promised to retaliate against Tehran's escalation as fears of a wider war intensified.

JERUSALEM — Iran fired a barrage of ballistic missiles at Israel on Tuesday evening in a major attack with little advance warning, sending Israelis scrambling for shelter as the security cabinet convened in a bunker and the United States readied forces to come to Israel’s defense.

WASHINGTON — Iran fired waves of missiles at Israel on Tuesday in what it called a revenge attack for Israel's killing of several Hezbollah leaders including its top leader Hassan Nasrallah. There were no immediate reports Israeli casualties from the barrage,