US stocks closed sharply lower Monday as Russia's war on Ukraine drove oil prices up, raising concerns over further increases in inflation.

A third round of peace negotiations between Russia and Ukraine concluded Monday with “small positive” developments on the issue of humanitarian corridors.

The Dow Jones Industrial Average fell 797.4 points, or 2.37%, to close at 32,817. The S&P 500 lost 127.78 points, or 2.95%, to 4,201.

The Nasdaq posted the largest decline, down 482.5 points, or 3.62%, to finish at 12,830.

The VIX volatility index, known as the fear index, soared 14.20% to 36.52.

The dollar index meanwhile increased 0.53% to 99.19.

Precious metals prices rose as safe haven assets, with gold adding 1.77% to $2,001 per ounce and silver rising 0.11% to $25.82.

Oil prices hit new historical highs during the day over concerns of a possible ban on Russian oil.

Brent crude oil reached $139.13 a barrel, its highest level since July 2008, and was trading at $123.8 per barrel, jumping 4.81%.

US benchmark West Texas Intermediate (WTI) crude was at $120.14, gaining 3.86%./aa