Trump rejects Iran truce as US presses Lebanon on Hezbollah funding, Saudi-US stress Hormuz security

US stocks declined on Monday as tensions between the United States and Iran continued to affect financial markets. President Donald Trump rejected Iran's offer of a seven-day truce, causing Wall Street indices to fall and US Treasury yields to rise. Oil prices also increased, although they remained below session highs as traders were optimistic about ongoing talks.

Iranian state media reported that Foreign Minister Abbas Araghchi was set to meet with Qatari mediators in New York for indirect talks with the US. Saudi Arabia and the US stressed the importance of maintaining security and freedom of navigation through the Strait of Hormuz and Bab al-Mandab during talks in Washington, focusing on regional developments, including the conflict in Yemen.

US Treasury Secretary Scott Bessent urged Lebanon's leadership to dismantle Iranian and Hezbollah financial networks, urging swift financial-sector reforms to restore confidence in the battered banking system. Meanwhile, the UK is holding talks with the US over President Trump's threat to halt American diesel exports, with Chancellor John Healey confirming contingency measures are in place.