Shares on Wall Street declined on Tuesday as heightened uncertainty over conflict in Asia and the debt crisis in Europe sent investors fleeing for safer assets.

Traders were confronted with tensions on two continents. In Asia, the South Korean military went to “crisis status” and threatened strikes against the North after the North fired shells at a South Korean island.

In Europe, fallout from the sovereign debt crisis continued. The Irish government faced imminent collapseafter a signoff on a $100 billion bailout set the stage for a new election. Greece’s international lenders cleared the way on Tuesday for Athens to receive an additional installment of its bailout package, saying the government had made progress in cutting the deficit. But they warned “extra effort” would be needed to meet next year’s goals.

Federal Bureau of Investigation agents raided the offices of three hedge funds on Monday in the government’s latest move in an investigation of insider trading on Wall Street.