Trump Rejects Iranian Peace Plan, Oil Prices Surge to $107 a Barrel

Oil prices surged on Monday after US President Donald Trump rejected an Iranian peace offer, sending jitters through global markets.

The proposal, made at the UN General Assembly last week, included a seven-day ceasefire and reopening of the Strait of Hormuz, a vital waterway for global energy supplies.

Trump dismissed the plan, saying Iran had 'overplayed their hand' and hinted that talks might continue, but indirect negotiations between Washington and Tehran could happen as soon as Monday.

Oil prices, which dropped over 2% on Friday when news of the offer broke, bounced back sharply, with Brent crude surging over 3% to climb above $107 a barrel.

The price jump has reignited inflation fears, putting pressure on stock markets across Asia. The Federal Reserve's next policy meeting at the end of October is now in focus, with traders betting there's more than a 65% chance of another interest rate hike.