Oil prices spike after Trump rejects Iran truce offer

Oil prices spiked with bond yields on Monday (September 28, 2026) as Donald Trump's rejection of an Iranian offer of a seven-day truce stoked inflation concerns, while stocks were mixed as traders look ahead to the release of key U.S. data.

Tehran last week set out a plan at the UN General Assembly for a halt in hostilities that would see the Strait of Hormuz reopened, which would ease a crippling supply crisis that has jacked up costs around the world.

The waterway is key to the world's energy supply and is now central to the conflict between the U.S. and Iran, particularly with Houthis seizing Yemen's entire Red Sea coast, including the Bab al-Mandab Strait, a vital shipping lane.

However, the U.S. president told reporters outside the White House "I reject their proposal".

Still, he told Axios that he expects negotiations to resume .