Global markets opened the week under pressure after President Donald Trump rejected Iran's proposal to reopen the Strait of Hormuz, lifting Brent crude to around $105.70 a barrel and WTI to $93.26 and pushing the 10 year Treasury yield to 5.20% as Asian bonds weakened and S&P 500 futures slipped. Brent topped $106 at one point. The dollar firmed as hawkish Federal Reserve bets built, and emerging market equities declined on higher oil prices and global bond yields.

Trump confirmed Saturday he had rejected Iran's offer, under which the strait would reopen on the sixth day after agreed US steps and talks on a final deal would begin on the seventh. He has told aides he expects to resume bombing Iran after the November midterms, US officials told the Wall Street Journal. A US official said tanker flow through Hormuz lessens the urgency of a deal. Trump told Axios he expects US negotiators to hold more talks with Iran this week, and he is 'very seriously' considering a US diesel export ban that could tighten global fuel supplies.

Iran's delegation in New York has no new negotiations on its agenda and is awaiting Washington's response to proposals conveyed through Qatar, state news agency IRNA reported. Foreign Minister Abbas Araghchi, due to leave New York on Tuesday, said Tehran is ready for 'real diplomacy' but remains fully prepared for the war to resume. Mediators are pressing Iran to accept nuclear concessions as a way to restart the talks, though Tehran has given no indication it is willing to do so, the Wall Street Journal reported. Iran's condition for a nuclear compromise is a written guarantee that Israel will not attack it again once a deal with the US is reached, and it came close to such a compromise in talks with Vice President JD Vance, a senior official from a country involved in the negotiations said.