Trump Rejects Iran's Proposal, Oil Prices Soar
US futures took a hit on Monday as oil prices surged in response to President Donald Trump's rejection of Iran's proposal to reopen the Strait of Hormuz and resume nuclear talks.
The proposal, which was made public on Saturday, involved Iran reopening the strait and resuming negotiations with the US if the country lifted its naval blockade of Iranian ports, waived sanctions on Iranian oil sales, and observed a ceasefire that would include Lebanon.
However, Trump rejected the proposal on Saturday, saying 'Iran wanted to make a deal because it was losing so badly.'
The rejection sent shockwaves through the market, with futures for the S&P 500 and Dow Jones Industrial Average declining by 0.5%, while Nasdaq futures dropped 1%.
Brent crude, the international standard, rose 3.6% to $100.98 a barrel for delivery in December, but the price of oil delivered in November was nearly $108, indicating high anxiety over supply after Trump's rejection of the deal.