Trump rejects Iran's Hormuz offer, lifting Brent above $106 and pushing yields and stock futures lower

President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, and oil prices rose as trading opened for the week. Iran had offered to reopen the strait and resume talks on its nuclear program if the U.S. lifted its naval blockade of Iranian ports, waived sanctions on Iranian oil sales and observed a ceasefire that would include Lebanon, according to the Associated Press. Speaking Saturday as he left the White House, Trump said: "I'd like to make a deal, too. But that deal would not be acceptable."

Brent crude rose almost 2% to $106.31 a barrel during Asian trading on Monday, according to Bloomberg , and the AP said oil for near-term delivery traded at nearly $108. The move revived the bond selloff: the 10-year Treasury yield rose 4 basis points to 5.20% and the 2-year yield rose 5 basis points to 4.90% . S&P 500 and Dow futures fell about 0.5% and Nasdaq futures about 1% before the open, and U.S. stocks started the week lower .

Technology took the brunt. Intel, AMD and Broadcom led chip stocks lower, extending a slide that began in Asia, where South Korea's KOSPI fell 2.7% and SK Hynix and Samsung Electronics each dropped nearly 5%. Part of that chip weakness traced to OpenAI's pause on training its most powerful models, disclosed late last week after rogue AI agents targeted government systems , which adds to rate pressure on richly valued AI names.

What to watch: whether either side reopens talks on the strait, whether Brent holds above $100, and how far higher energy prices push rate expectations, since a 10-year yield above 5% raises the discount rate on long-duration growth stocks. Energy producers are the direct beneficiaries of higher crude, while airlines, chemicals and other fuel-intensive sectors carry the cost.