Financial markets may be in for a "knee-jerk" selloff if the U.S. military attacks Iran, with economists warning that a dramatic rise in oil prices could damage a global economy already strained by President Donald Trump's tariffs.

Stocks rose and oil prices retreated on Monday as investors shrugged off the continuation of hostilities between Israel and Iran over the weekend.

And there’s plenty of both to go around Tuesday.The stock market showed its resilience, or at least its bias toward optimism, as the three main indexes rebounded after the selloff late last week. The S&P 500 closed above 6000 Monday,