Oil rises and tech stocks rally as peace talks stall
Oil prices climbed over 4% after the U.S. rejected an Iranian peace proposal regarding the Strait of Hormuz. Despite the geopolitical tension, South Korean chipmakers led a regional AI rally to record highs while China reported producer prices hitting a 45-month peak.
Brent Crude Oil rose 4% during the Monday morning session after United States President Donald Trump rejected a peace proposal from Iran. The rejection stalls efforts to reopen the Strait of Hormuz, maintaining a high geopolitical risk premium in energy markets. Investors face a split market as regional tensions drive oil and the dollar higher, while the artificial intelligence sector sustains equity momentum.
### Strait of Hormuz Remains Blocked The United States labeled the Iranian proposal "totally unacceptable," according to Trump. Iran had requested compensation for war damages and demanded full sovereignty over the Strait of Hormuz in a plan released on Sunday. The United States counter-proposal requires an immediate end to fighting before addressing the Iranian nuclear program.
