Stalemate in US-Iran Talks Sends Global Stocks Tumbling

Global stocks declined on Monday as oil prices surged due to the ongoing stalemate in US-Iranian talks, which also boosted the dollar's performance.

Oil futures rose by up to 3% to $107.16 a barrel, marking a nearly 20% gain this month, while Brent futures reached nearly 50% above their levels before the war started in late February.

The recent increase in oil prices has lifted diesel costs to all-time highs, raising concerns that inflation may become embedded in pricing and wage decisions.

Central banks have responded with rate hikes, with the Reserve Bank of Australia expected to tighten monetary policy on Tuesday, and markets now imply a 68% chance of a second consecutive Federal Reserve hike in October.