Trump Rejects Iranian Proposal, Crude Prices Soar
US stock futures took a hit on Monday after President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz and resume talks on its nuclear program. The proposal, which was made over the weekend, included lifting US sanctions on Iranian oil sales and observing a ceasefire in Lebanon. However, Trump shot down the offer, saying that Iran wanted to make a deal because it 'was losing so badly.'
The rejection of the proposal sent crude prices soaring, with Brent crude rising 3.6% to $100.98 a barrel for delivery in December. The price of US benchmark crude also jumped 4.2% to $96.26 a barrel. The spread between November and December delivery is broad in both Brent and US crude, suggesting high anxiety over supply.
The news also had an impact on European markets, with France's CAC 40 edging up 0.2%, while Germany's DAX slipped 0.1%. Asian markets were mostly lower, and the US dollar dipped to 157.05 Japanese yen from 157.19 yen.