Oil prices spike after Trump rejects Iran truce offer

Oil prices experienced a significant surge and bond yields rose on Monday following President Donald Trump's decision to reject an Iranian offer for a seven-day truce. The move has raised concerns about potential inflation and spurred mixed reactions in the stock market as traders prepare for the release of crucial US economic data.

Iran had proposed a ceasefire plan at the United Nations General Assembly, aiming to reopen the Strait of Hormuz and alleviate a global energy supply crisis. The waterway is vital to the world's energy trade and has become a focal point of the ongoing US-Iran conflict, particularly with the Houthis seizing control of Yemen's Red Sea coast and the Bab al-Mandab Strait, a critical shipping lane.

Despite rejecting the Iranian proposal, Trump indicated a willingness to resume negotiations, stating that the deal offered by Iran was not the one he would have agreed to a year ago. He also described Iran's actions as overplaying their hand in the interview published on Sunday.