Oil Price Spike Knocks US Stocks Downward

Rising oil prices are putting pressure on US stocks, causing them to fall. The S&P 500 dropped 0.5% and gave back some of its gains from last week, which had brought it close to its all-time high. The Dow Jones Industrial Average fell by 380 points, while the Nasdaq composite slipped 0.5%. Stocks were negatively impacted after the price for Brent crude oil rose 1.4%, sending yields higher in the bond market.

The surge in crude prices comes as President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz. Iran had offered to resume talks on its nuclear program if the US lifts its naval blockade, waives sanctions on Iranian oil sales, and observes a ceasefire that would include Lebanon. However, Trump rejected the proposal, saying Iran wanted to make a deal because it was 'losing so badly.'

Brent crude, the international standard, rose 3.6% to $100.98 a barrel for delivery in December, while benchmark US crude jumped 4.2% to $96.26 a barrel.