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 in New York, offered to reopen the strategic waterway in exchange for the lifting of a U.S. naval blockade and the release of frozen assets. 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 November midterm elections.

The diplomatic impasse triggered a sharp rise in global energy prices, with Brent crude peaking above $109 a barrel. This surge fueled inflation fears, driving U.S. 10-year Treasury yields to a 19-year high of 5.27% and causing a global bond sell-off. In response to oil-driven inflation, the Reserve Bank of Australia raised its key interest rate to a 15-year high of 4.6%.

Regional tensions escalated as Saudi-led coalition forces intercepted Houthi drones and missiles targeting Riyadh and Khamis Mushait. Meanwhile, Middle East crude exports reached 12.8 million barrels per day in September, supported by Saudi Arabia repairing its East-West pipeline to resume exports from Yanbu. Despite these volumes, markets remain volatile as Iran's Foreign Minister Abbas Araghchi warned that the nation is "fully prepared" for renewed conflict, including a potential "doomsday war."