Trump Rejects Iran Truce Offer, Oil Prices Surge on Inflation Fears

Oil prices surged on Monday after US President Donald Trump rejected Iran's proposal for a seven-day truce, sparking concerns about inflation. The Strait of Hormuz, a key waterway in global energy supply, has been at the center of the conflict between the US and Iran.

Tehran had offered to reopen the strait, which would have eased the supply crisis that has driven up costs worldwide. However, Trump told reporters outside the White House that he rejects their proposal, saying 'they overplayed their hand.'

Despite this, Trump hinted at resuming negotiations with Iran in an interview with Axios, stating that indirect talks could take place as early as Monday.

The rejection of the truce offer led to a rebound in oil prices, with Brent surging over 3% above $107 per barrel. This stoked inflation concerns, causing bond yields to climb and weighing on stock markets.