Gotrade News - Oil prices climbed on Monday after US President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz, sending Brent crude above $107 a barrel while Asian stocks slipped and bond yields rose.
According to Reuters, Brent futures rose 2.7% to $107.16 a barrel, bringing gains so far this month to almost 18%, while US crude futures added 1.9% to $94.16.
Share markets were mostly lower amid doubts that the United States and Iran will reach a truce anytime soon, Reuters reported. Per Seeking Alpha, Asian equities traded predominantly lower, reversing early gains, as US equity futures came under pressure following the rejection.
Trump Rejects Iran's Seven-Day Hormuz Offer
As reported by Reuters, Trump rejected the Iranian proposal over the weekend, claiming Tehran was desperate to make a deal. He said talks would continue this week, though Iran shows no sign of watering down its proposals.
The offer would have opened the Strait of Hormuz for seven days, followed by broader negotiations, according to Stocktwits.
Trump told Axios that "it is not the deal that I want to make," adding that Iran had "overplayed their hand," the outlet reported. Iran's foreign minister, meanwhile, said Iran remains steadfast in the face of any aggression but is "ready for real diplomacy," per Stocktwits.
KOSPI Drops 2% as Chinese Blue Chips Hit One-Year Low
Per Reuters, MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.6%, Japan's Nikkei was flat, and South Korea's stock market slid 2.0%. Chinese blue chips fell 1.9% to a one-year trough, with tech hit after a group of US lawmakers introduced legislation on Friday to bar the federal government from equipping sensitive systems with Chinese-made components used to transmit data in AI data centers.
Wall Street futures followed the region lower. S&P 500 futures fell 0.3% and Nasdaq futures shed 0.7%, according to Reuters, while EUROSTOXX 50 futures firmed 0.3%. In currencies, the dollar edged up 0.3% to 157.75 yen.
Market (Monday, Asia session) | Move | Level |
|---|
Brent crude futures | +2.7% | $107.16/bbl |
US crude futures | +1.9% | $94.16/bbl |
MSCI Asia-Pacific ex-Japan | -0.6% | n/a |
South Korean stocks | -2.0% | n/a |
Chinese blue chips | -1.9% | One-year trough |
S&P 500 futures | -0.3% | n/a |
Nasdaq futures | -0.7% | n/a |
30-year Treasury yield | +27 bps this month | 5.5173% |
Gold | -2.2% | $4,192/oz |
30-Year Treasury Yield Nears Highest Since 2004
Bonds stayed under pressure as costlier energy fed inflation worries. According to Reuters, yields on 30-year Treasuries nudged up to 5.5173%, near their highest since 2004, having climbed 27 basis points this month, while the 10-year yield stood at 5.20%, as reported by Stocktwits.
Reuters noted that a dearth of refining capacity has lifted diesel prices to all-time highs far above crude, raising the risk that inflation becomes embedded in pricing and wage decisions.
Markets now imply a 68% chance the Federal Reserve will hike for a second straight meeting in October, with around 90 basis points of tightening priced out to late next year. The Reserve Bank of Australia is likely to be the next central bank to tighten when it meets on Tuesday.
"Amidst strong growth and firming perceptions of resilience to high energy prices, it is no surprise that rates are moving higher while equity prices remain close to record levels," said Bruce Kasman, chief economist at JPMorgan, as quoted by Reuters.
As reported by Stocktwits, shares of Micron Technology (MU) were down about 1.45% in overnight trading late Sunday ahead of a crucial week in which the memory chipmaker reports fourth-quarter earnings. Meta Platforms (META) pulled back more than 2% overnight after stellar gains last week following its Meta Connect 2026 hardware and software announcements.
The iShares Silver Trust (SLV) fell nearly 4% overnight as rising Treasury yields, the oil surge, a stronger dollar and rate-hike concerns weighed on silver prices, per Stocktwits. Gold fell 2.2% to $4,192 an ounce, according to Reuters.
PCE and September Payrolls Up Next
Investors now face a packed week of US economic data. According to Stocktwits, the August PCE report, the Fed's inflation gauge, is due Wednesday, followed by manufacturing numbers and the September jobs report.
Reuters reported that Friday's payrolls report is forecast to show a gain of 85,000, with the unemployment rate expected to hold at 4.1%, while the Atlanta Fed's GDPNow measure is forecasting 5.0% growth for this quarter.
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