President Donald Trump rejected extending a temporary Iran ceasefire as Tehran threatened to adopt a more aggressive military stance, raising fresh concerns about the Strait of Hormuz, global oil supplies and financial markets.
Oil Prices Rise as Hormuz Risks Grow
Late Monday, Dow futures fell 10.00 points, or 0.02%, to 53,534.00, while S&P 500 futures declined 2.25 points, or 0.03%, to 7,766.50. Nasdaq 100 futures slipped 4.75 points, or 0.02%, to 30,091.25 as of around 9:28 p.m. EDT.
In commodities, WTI crude oil rose 0.41% to $84.85 per barrel, while Brent crude gained 0.15% to $91.01 per barrel. Natural gas futures advanced 0.22% to $2.696 per MMBtu.
Meanwhile, the U.S. dollar index, which tracks the greenback against a basket of currencies, stood at 99.559, down 0.02% as of around 6:34 a.m. IST.
Asian markets traded mixed, with South Korea’s KOSPI rising 3.18% to 7,199.87, while Japan’s Nikkei 225 fell 0.38% to 68,956.77.
Read Also: President Trump Scheduled for White House Crypto Summit as CLARITY Act Stalls
Trump Rejects Iran Ceasefire Extension
A 60-day memorandum of understanding between the U.S. and Iran expired Monday without a broader peace agreement. The deal was intended to end military operations and pave the way for negotiations covering Iran’s nuclear program and U.S. sanctions.
When asked whether Washington would extend the interim agreement, Trump said no, Reuters reported.
Iran Threatens ‘Fully Offensive’ Military Posture
A senior Iranian official told the publication that Tehran would shift to a "fully offensive" posture if diplomatic efforts fail.
Iran has accused Washington of failing to meet its commitments under the June agreement and warned it could take military action to challenge the U.S. naval blockade.
The dispute centers heavily on the Strait of Hormuz, a critical energy route where tanker traffic has been severely disrupted during the conflict. Iran says the agreement gives it a role in managing the waterway, while the U.S. rejects that interpretation.
Back-channel diplomacy has not completely disappeared. Reports indicate the Trump administration has sought communication with figures connected to Iran’s Islamic Revolutionary Guard Corps, even as formal negotiations remain stalled.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image via Shutterstock/ Below the Sky
.png?w=600)
