Trump Rejects Iran's Truce Proposal, Oil Prices Surge

US President Donald Trump publicly rejected an Iranian proposal for a seven-day truce and the reopening of the Strait of Hormuz, leading to a significant increase in crude oil prices and global bond yields. Following Trump's dismissal of the diplomatic overture during a White House media appearance, Brent crude rose about 1.8% to trade near $106.19 per barrel, while West Texas Intermediate (WTI) climbed roughly 1.0% to around $93.34 per barrel.

The Iranian initiative, communicated through Qatari mediators and presented at the United Nations General Assembly, aimed to pause regional hostilities and unblock the Strait of Hormuz, contingent upon the release of frozen Iranian assets, lifting of petroleum sanctions, and cessation of the US naval blockade. Despite the public rejection, market analysts suggest that back-channel negotiations could still occur as Washington considers its long-term strategy.