U.S. financial markets came under pressure after President Donald Trump rejected an Iranian proposal aimed at ending the ongoing conflict, increasing uncertainty over the future of negotiations.
According to Reuters, U.S. stock futures declined on September 28 as investors reacted to Trump’s decision. The Dow, S&P 500 and Nasdaq futures all moved lower, while crude oil prices climbed around 4% to approximately $108 per barrel.
Trump has nevertheless indicated that U.S. negotiators could continue discussions with Iran during the week. The major points of disagreement reportedly include control of the Strait of Hormuz and Iran’s nuclear programme.
The developments are also creating concerns about inflation and interest rates in the United States because higher oil prices can increase costs for businesses and consumers.
Meanwhile, investors are watching upcoming U.S. economic data, including inflation-related figures and employment numbers, which could influence expectations for Federal Reserve policy.
The situation remains closely watched as Washington considers its next steps and markets respond to developments in the Middle East.
