Trump Rejection Spurs Oil Price Jump, US Dollar Strength

Oil prices jumped over 1% in early Asia trading on Monday after US President Donald Trump rejected an Iranian peace proposal aimed at ending the Middle East conflict. The move pushed up yields and further strengthened the US dollar against most G10 currencies.

The PBOC's sharply lower dollar fix has been a notable development, coming just days after it cautioned against one-way moves in the yuan. With rising US yields, it will be difficult for Japanese officials to suppress the greenback's advance.

Iranian President Masoud Pezeshkian said in a US television interview that it is for the United States to choose whether to end its war in Iran, as Tehran does not wish to continue fighting. The Strait of Hormuz remains a key concern for oil markets, with Brent gaining 1.8% to $106.31 a barrel and US crude futures rising 1.3% to $93.62 a barrel.