Oil prices spike as Trump rejects Iran truce, stoking inflation fears
Oil prices and bond yields spiked Monday after President Donald Trump rejected Iran's seven-day truce offer, reigniting inflation concerns. Stock markets were mixed as traders awaited key U.S. economic data and Federal Reserve signals. Iran proposed the truce at the UN General Assembly, offering to reopen the Strait of Hormuz, a critical energy waterway, to ease a global supply crisis. Trump said he rejected the proposal but expects negotiations to resume, with indirect talks possibly starting Monday. Brent crude rose above $106 a barrel after Friday's decline, while Asian markets fell and world bond yields hit their highest since 2007. Investors now focus on the Fed's late-October meeting, with over 65% odds of another rate hike, ahead of key inflation and jobs data.