Oil prices rise as Trump rejects Iran truce proposal, markets turn cautious

New York, USA, September 28, 2026 — Oil prices and bond yields rose Monday after US President Donald Trump rejected an Iranian proposal for a seven-day truce, renewing concerns about inflation and the global energy supply.

Iran presented a proposal at the United Nations General Assembly last week that included a temporary halt in hostilities and the reopening of the Strait of Hormuz, a key route for global energy shipments.

Trump told reporters outside the White House that he rejected the proposal, although he said negotiations with Tehran could resume.

Iran has maintained conditions for reopening the Strait of Hormuz, including the release of frozen assets, the lifting of sanctions on its oil industry and an end to the US naval blockade.

Oil prices, which fell by more than 2 percent on Friday after news of Iran's proposal, rebounded at the start of the new week, with Brent crude rising above $106 a barrel.

The increase in energy prices revived inflation concerns and weighed on several Asian stock markets. South Korea's market fell more than 2 percent after reopening following a long holiday, while Tokyo, Shanghai, Manila, Bangkok and Jakarta also recorded declines. Hong Kong, Sydney, Singapore and Wellington posted gains.

Bond yields also moved higher. According to Bloomberg, the average yield on a gauge of global bonds exceeded 4 percent last week for the first time since 2007.

The renewed rise in energy prices has put monetary policy back in focus ahead of the US Federal Reserve's next policy meeting at the end of October.

Investors are also awaiting key US economic data this week, including the Federal Reserve's preferred inflation measure and a major employment report, both of which could influence expectations for future interest-rate decisions.

Stephen Innes of Quintex Intel said renewed tensions in the Middle East had pushed oil prices higher and weakened Asian equities, while markets continued to price in the possibility of a return to negotiations between Washington and Tehran.