Global Markets Slip as US-Iran Ceasefire Hopes Fade

Hopes for a peace agreement between the United States and Iran weakened, increasing concerns that the global energy crisis could persist and forcing Washington to consider potential military measures to reopen the Strait of Hormuz, Jason Ma reported for Fortune.

Futures tied to the Dow Jones Industrial Average fell 200 points, or 0.40%. Futures for the S&P 500 declined 0.33%, while Nasdaq futures dropped 0.28%.

Futures tied to the Dow Jones Industrial Average fell 200 points, or 0.40%. Futures for the S&P 500 declined 0.33%, while Nasdaq futures dropped 0.28%.

US oil futures climbed 2.7% to $97.97 per barrel, while Brent crude rose 2.7% to $104.01. Gold slipped 0.76% to $4,695 per ounce. The US dollar strengthened 0.2% against the euro and 0.14% against the Japanese yen, while the yield on the 10-year Treasury note remained steady at 4.36%.

Iran responded Sunday to a US ceasefire proposal, saying negotiations must focus on permanently ending the war across all fronts, including Lebanon.

Sources cited by the The Wall Street Journal said Iran proposed gradually reopening the Strait of Hormuz in exchange for the United States lifting its naval blockade.

The report added that Tehran rejected demands to dismantle its nuclear facilities and suspend uranium enrichment for 20 years, while also requesting the release of frozen Iranian funds abroad.