Oil prices surge as Trump rejects Iran war proposalb

President Donald Trump rejected Iran's latest proposal to end the war on Sunday, calling the offer "TOTALLY UNACCEPTABLE!" and sending oil prices higher into Monday morning trading.

Brent crude futures rose more than 2% to about $104 a barrel Monday morning. The rejection left the two sides without a clear path to reopening the Strait of Hormuz. Iran's proposal, relayed through semi-official Tasnim news agency, called for ending the conflict across all fronts and lifting sanctions on Tehran.

In the minutes after Trump's post Sunday on Truth Social, equity futures showed modest pressure. On Monday morning, futures tied to the Dow Jones Industrial Average, the S&P 500, and the Nasdaq were all off slightly. Those moves followed a broadly strong prior week, during which the Nasdaq surged more than 4% and the S&P 500 added more than 2% — each notching a sixth straight weekly advance, something neither index had achieved since 2024. Friday's close left both at all-time highs.

A surprise jobs reading provided the final boost heading into the weekend, with April nonfarm payrolls totaling 115,000 — well above the 55,000 forecast from Dow Jones-polled economists — giving equities a late-week lift.

Investors will now turn their attention to inflation data. Tuesday's release of the April CPI is forecast by economists to reflect a year-over-year price gain of 3.8%, a pickup from the 3.3% reading recorded the prior month, according to The Wall Street Journal. Traders will also watch producer price index data later in the week, along with earnings from companies such as Under Armour and Cisco.

A Beijing trip is on Trump's schedule for later in the week, with President Xi Jinping of China expected to face pressure from Trump to facilitate a peace agreement and engage on trade matters.

The Senate is also expected to confirm Kevin Warsh as the next Federal Reserve chair this week.

Despite the headwinds, BlackRock's Rick Rieder, who oversees global fixed income as chief investment officer, told CNBC that deeper structural factors underpinning the U.S. economy are likely to prove more powerful than the drag from higher oil prices and wartime uncertainty.