TOKYO -- Asian shares mostly fell on Tuesday as recent market enthusiasm faded and traders confronted uncertainty over attempts to halt the war in Iran.

Japan's Nikkei 225 index dropped 3.6 percent to close at 69,788.38.

"We have seen eight days of strong markets," noted Neil Newman, Managing Director and Head of Strategy at Astris Advisory Japan. "Now the momentum has eased a bit."

Australia's S&P/ASX 200 index declined 0.3 percent to 8,787.00 in afternoon trading. South Korea's Kospi fell 1.0 percent to 8,203.84. Hong Kong's Hang Seng index slipped 2.1 percent to 23,261.96, and the Shanghai Composite lost 1.3 percent to 4,107.18.

Wall Street ended Monday with mixed results after oil prices retreated and major technology stocks pulled back.

The S&P 500 declined 0.4 percent, ending a stretch of 11 winning weeks out of the past 12 and sitting 1.8 percent below its recent record high. The Dow Jones Industrial Average rose 148 points, or 0.3 percent, while the Nasdaq composite dropped 1.3 percent.

Oil prices declined after weekend discussions between the United States and Iran aimed at ending their conflict. U.S. Vice President JD Vance described the talks as creating a solid base for a final agreement.

A resolution could reopen the Strait of Hormuz to oil shipments and restore full exports from the Persian Gulf. Iran's military announced on Saturday that it had again closed the strait, though U.S. Central Command has rejected that claim.

On Tuesday, U.S. benchmark crude fell 1.14 dollars to 72.72 dollars per barrel. Brent crude, the global benchmark, dropped 1.31 dollars to 76.59 dollars per barrel.

The 10-year Treasury yield rose to 4.50 percent from 4.46 percent. Yields have increased on speculation that the Federal Reserve could raise interest rates this year to counter inflation, which has risen due to higher oil costs tied to the Iran conflict. Economists anticipate a Thursday report showing consumer inflation accelerating to 4.1 percent in May from 3.8 percent in April.

SpaceX shares fell 16.4 percent to 154.60 dollars, marking the third consecutive decline for the firm behind xAI after a strong three-day rally following its stock market debut at 135 dollars per share.

The largest drags on the S&P 500 included declines of 5 percent for Alphabet, 4.7 percent for Amazon and 4.5 percent for Broadcom.

Overall, the S&P 500 fell 27.79 points to 7,472.79. The Dow Jones Industrial Average gained 148.01 points to 51,712.71, and the Nasdaq composite dropped 351.33 points to 26,166.60.

In currency markets, the U.S. dollar rose slightly to 161.68 Japanese yen from 161.52 yen. The euro traded at 1.1426 dollars, down from 1.1431 dollars.