US stock futures slide and oil surges after Trump calls Iran offer 'totally unacceptable'
Wall Street futures slipped on Monday morning while oil prices jumped after Trump rejected Iran's latest proposal to halt the war. The move pushed investors to brace for a longer Gulf standoff, sending the dollar higher as a safe haven and lifting volatility gauges.
US index futures opened lower on Monday morning, with S&P 500 and Nasdaq contracts both down. Brent crude jumped more than 3% per barrel and WTI followed suit. Trump's weekend rejection of Iran's ceasefire proposal as 'totally unacceptable' revived supply-chain concerns around the Strait of Hormuz.
Investors rotated into the dollar and gold. The dollar index held near its intraday high while gold traded above the 2,700 mark. In bonds, the 10-year Treasury yield ticked up on energy-driven inflation expectations. Airline and logistics shares came under pressure in pre-market trading.
Analysts said a prolonged crisis could remove the September Fed cut from market pricing. Goldman Sachs and Citi's previous 90-dollar Brent ceiling is now back in debate. The Treasury is keeping the option of releasing Strategic Petroleum Reserve barrels on the table as a buffer against any energy shock.
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