WASHINGTON DC: Global crude oil prices increased on Monday after US President Donald Trump rejected a seven-day ceasefire proposal offered by Iran. The rise in prices has fueled concerns over global inflation and impacted stock markets worldwide.
Iran had proposed the ceasefire at the United Nations General Assembly last week, hoping it would reopen the Strait of Hormuz and ease global energy supply constraints. However, President Trump told reporters outside the White House that the proposal was unacceptable. Despite the rejection, reports suggest that indirect talks between the two nations could resume as early as Monday.
Tehran has set conditions for reopening the Strait, including the release of frozen assets, the lifting of oil sanctions, and an end to the US naval blockade. Following a drop on Friday, crude oil prices rebounded on Monday. Brent crude rose 1.8 percent to 106.19 US dollars per barrel, while West Texas Intermediate crude increased 1 percent to 93.34 US dollars per barrel.
The price hike has pressured Asian markets. Stock indices in South Korea, Japan, China, the Philippines, Thailand, and Indonesia declined, while markets in Hong Kong, Australia, Singapore, and New Zealand saw gains. Global bond yields have also risen, reaching their highest levels since 2007. Investors are now awaiting the US Federal Reserve’s upcoming monetary policy meeting, with key inflation and employment data expected later this week, which may influence future interest rate decisions.
