U.S. stocks fell ahead of the Federal Reserve's rate decision as Treasury yields hit more multiyear highs amid signs of a prolonged oil shock.

The Dow Jones Industrial Average dropped 328.09 points, or 0.63%, to 52093.11. The S&P 500 lost 34.25 points, or 0.45%, to 7585.73 and the tech-heavy Nasdaq Composite fell 204.84 points, or 0.78%, to 25981.57.

Oil futures surged $4.44, or 4.4% to $105.83 a barrel as concerns mounted about the ability of one of the world's largest exporters, Saudi Arabia, to get its crude to market. Alerts sounded across Saudi Tuesday as Houthi rebels stepped up attacks that threaten alternative sea- and pipeline routes to the Strait of Hormuz, Reuters reported. At a recent event in Houston, Chevron Chief Executive Mike Wirth warned that strategic reserves and other buffers that cushioned the effect of the Iran war in its early stages were now wearing thin.

The oil supply crisis has driven up inflation expectations and long-term Treasury yields.

The yield on the 10-year Treasury note rose 0.035 percentage point to 4.995%, the highest close since July 20, 2007. The yield on the policy-sensitive two-year Treasury rose 0.028 percentage point to 4.661%.The yield on the 30-year bond rose 0.036 percentage point to 5.362%.