Stocks drop and oil rises as Hormuz hopes fade

Asian markets fell and oil prices rose on Monday as hopes for the Strait of Hormuz reopening faded. Donald Trump rejected Iran's offer for a seven-day truce, causing gloom among traders. Axios reported that Trump had offered Iran sanctions relief and frozen funds, but the president denied the claim on his platform. Talks between Iran and Qatar are expected to focus on messages exchanged with the United States, particularly regarding conditions set by Iran for the Strait of Hormuz reopening.

Despite strong economic data, markets remain concerned about rising inflation, which could force the Federal Reserve to tighten monetary policy more.