President Trump rejects Iran ceasefire proposal; oil and yields jump

Trump’s reported rejection of Iran’s framework for reopening the Strait of Hormuz lifted oil prices and contributed to a rise in Treasury yields, increasing inflation pressure and complicating Fed policy expectations ahead of US inflation and jobs data.

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- CNBC reported Brent traded above $105 and WTI around $93 after the report.
- Stock futures fell modestly (S&P and Nasdaq futures down ~0.2%) as oil and yields pressured risk assets.
- Investors flagged higher energy costs as adding to inflation and Fed-hike expectations.
- Rising oil prices add to the Fed’s inflation considerations ahead of PCE and payroll reports this week.
- Higher yields, already at multiyear highs, make equities more sensitive to data showing persistent inflation.
- Geopolitical uncertainty increases volatility in commodities, FX and fixed income markets.

Read full analysis on cnbc.com

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