Trump Rejects Iran Truce as Oil Prices Spike

President Donald Trump rejected a seven-day ceasefire proposal from Iran intended to reopen the Strait of Hormuz and resume nuclear talks. The proposal, transmitted via Qatari mediators during the UN General Assembly, sought the lifting of a U.S. naval blockade and the release of frozen assets in exchange for reopening the waterway. Trump characterized the offer as "unacceptable," stating that Iran has "overplayed its hand," though he indicated that negotiations could resume. He further refused to rule out additional military strikes on Iran before the U.S. midterm elections.

The diplomatic impasse triggered a sharp rise in global energy markets, with Brent crude climbing above $109 a barrel. This spike fueled inflation concerns, pushing U.S. 10-year Treasury yields to their highest levels since 2007 and prompting traders to anticipate a more hawkish stance from the Federal Reserve. In Europe, wholesale natural gas prices rose as the European Commission warned of a potential winter crisis due to low reserves and restricted LNG flows.

Simultaneously, the region faced increased military volatility. Saudi-led coalition forces intercepted Houthi drones and missiles targeting Riyadh and Khamis Mushait, leading Riyadh to suspend in-person classes. While U.S. Central Command reported that oil volumes through the strait had recently reached a six-month high, Iranian officials maintained that any reopening remains contingent on their conditions. Iranian Foreign Minister Abbas Araghchi warned that the nation is prepared for renewed conflict, including a potential "doomsday war."