Surging oil prices drag US futures lower as Trump rejects Iranian proposal
Surging crude prices are dragging on U.S. futures after President Donald Trump rejectedIran's proposal to reopen the Strait of Hormuz.
Iran had offered to reopen the strait and resume talks on its nuclear program if the U.S. lifts its naval blockade of Iranian ports, waives sanctions on Iranian oil sales and observes a ceasefire that would include Lebanon.
But on Saturday, Trump rejected the proposal saying Iran wanted to make a deal because it was "losing so badly."
Futures for the S&P 500 and the Dow Jones Industrial Average both declined 0.5% Monday. Nasdaq futures dropped 1%.
Brent crude, the international standard, rose 3.6% to $100.98 a barrel for delivery in December. But there is a red flag when compared with the contract for November delivery, or oil that buyers want right now. The price for a barrel of oil delivered more quickly is nearly $108, suggesting high anxiety over supply after Trump's rejection of a deal to get crude moving again.
Benchmark U.S. crude jumped 4.2% to $96.26 a barrel. The spread between November and December delivery is broad in the U.S. as well.
There is also a wave of economic data being released in the U.S. this week, including the latest report on job openings by the Labor Department on Tuesday. The Commerce Department will issue its third and final estimate of how the U.S. economy performed in the second quarter of 2026 on Wednesday.
In early trading, Nvidia is moving higher on a big share buyback authorization, and also the unveiling of a new security platform.
In Europe, France's CAC 40 edged up 0.2% to 8,095.96, while the German DAX slipped 0.1% to 25,391.66. Britain's FTSE 100 rose 0.2% to 10,719.39. Asian markets were mostly lower.
The U.S. dollar dipped to 157.05 Japanese yen from 157.19 yen. The euro cost $1.1372, down from $1.1393.
Source: Associated Press
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