U.S. and Iran exchange accusations over overnight strikes

Secretary of State Marco Rubio stated that an agreement with Iran was still possible, adding that President Trump wanted either a good deal or no deal at all.

Lebanon fighting Rescue workers recovered a dozen bodies from rubble in eastern Lebanon after an Israeli airstrike, state media reported Tuesday. Israel's Prime Minister Benjamin Netanyahu had authorized more intensive strikes against Hezbollah. Israeli forces clashed with Hezbollah fighters along the Litani River as troops advanced north.

The Israel Defense Forces said it struck more than 100 Hezbollah sites in southern Lebanon and the Bekaa Valley overnight. Lebanon's health ministry said an Israeli strike Monday in the town of Mashghara killed 11 people, including two children, and wounded 15 others.

Tanker incident An explosion damaged a tanker 60 nautical miles east of Muscat, Oman, near the Strait of Hormuz, the U.K. navy's Maritime Trade Operations Center reported Tuesday. The crew and vessel remained safe, though some bunker fuel entered the sea.

U.S. market reaction U.S. stocks rose Tuesday despite the overnight strikes.

The S&P 500 gained 48 points to 7,522, the Dow Jones Industrial Average rose 0.2 percent, and the Nasdaq Composite increased 1 percent. Brent crude oil climbed to around $100 a barrel after falling nearly $5 on Monday. Higher energy prices have pushed inflation to its highest level in almost three years.

Qatar denial Qatar denied a report that it offered Iran a $12 billion loan to secure a peace deal. Majed Al-Ansari, spokesperson for Qatar's Ministry of Foreign Affairs, called the claim false and baseless.

Cabinet meeting President Trump will hold a Cabinet meeting at Camp David on Wednesday morning, sources told CBS News. Discussions are expected to cover foreign policy updates including the Iran situation.