Hormuz Hopes Fade as Trump Rejects Iranian Truce Offer

Asian stocks declined and oil prices continued to rise as hopes for a reopening of the Strait of Hormuz faded amid expectations that the Federal Reserve will hike interest rates again next month.

The US President Donald Trump rejected Iran's offer for a seven-day truce over the weekend, dealing a blow to hopes for an easing of Middle East tensions.

Trump denied a report by Axios that he offered Iran sanctions relief and the release of frozen funds, calling it 'a HOAX'.

The conflict between the US and Iran has put upward pressure on fuel costs, with both main crude contracts rising more than one percent on Tuesday.