Trump Rejects Iran Truce Offer, Sending Oil Prices Soaring

Oil prices surged on Monday after US President Donald Trump rejected Iran's offer of a seven-day truce, sparking inflation concerns and weighing on stock markets.

The rejection of Tehran's plan to reopen the Strait of Hormuz, which is crucial for global energy supply, led to a spike in oil prices with Brent North Sea Crude rising 1.8% to $106.19 per barrel.

Trump told reporters that he expects negotiations to resume but rejected the Iranian proposal, saying 'they overplayed their hand' and that it was not the deal he wanted.

The move stoked inflation concerns, with bond yields climbing as investors await the release of key US data, including the bank's preferred gauge of inflation and a jobs report.