Oil surges above $108 as Trump rejects Iran strait reopening proposal

Brent crude $BRENT climbed above $108 per barrel on Monday after U.S. President Donald Trump rejected an Iranian proposal to reopen the Hormuz Strait, escalating geopolitical tensions. Oil futures sank on Sunday following Trump's refusal to rule out additional strikes on Iran before midterm elections, triggering broad equity declines alongside climbing U.S. Treasury yields.

The energy surge is weighing on equities globally, with investors bracing for potential Fed rate hike bets to strengthen as inflation pressures mount from higher oil.