US stocks fall, bond yields rise as Middle East war drags on

US stocks fell on Monday, September 28 as President Donald Trump dismissed Iran's offer of a seven-day ceasefire in the Middle East conflict. Oil prices surged, though they did not reach their peak levels, as traders were encouraged by Trump's statement that talks would continue. Wall Street indices fell throughout the trading session, with the S&P 500 ending the day down 0.8 percent.

The tense situation between the United States and Iran is causing significant market volatility, with yields surging and oil prices climbing, according to Jose Torres of Interactive Brokers. The geopolitical situation is also impacting European markets, which saw a slight decline across London, Frankfurt, and Paris. Meanwhile, natural gas prices in Europe increased, and diesel prices in the UK hit a record high.

Meanwhile, gold prices have dropped from their summer highs due to the stronger dollar, making the metal more costly for non-dollar buyers. Iran had proposed a ceasefire last week, which would reopen the Strait of Hormuz and alleviate global energy supply issues. However, President Trump rejected the proposal on Saturday but indicated that he expects talks to resume in the days to come.