Late Sunday, U.S. stock futures slipped and crude prices spiked after President Donald Trump rejected Iran's response to a U.S.-backed peace proposal. The move dashed hopes for a quick diplomatic resolution and sent investors scrambling for safe havens.
Dow futures fell 168.00 points, or 0.34%, to 49,523.00, while S&P 500 futures slipped 10.00 points, or 0.13%, to 7,409.00 and Nasdaq 100 futures gained 47.25 points, or 0.16%, to 29,379.75 as of 8:25 p.m. EDT. The mixed performance suggests traders are still weighing the risks, but the energy sector is clearly feeling the heat.
In commodities, WTI crude oil rose 3.31% to $98.58 per barrel. Brent crude advanced 3.19% to $104.52 per barrel. Natural gas futures climbed 2.32% to $2.821 per MMBtu. Meanwhile, the U.S. dollar index stood at 97.984, up 0.15%.
Asian markets were higher, with South Korea's KOSPI surging 3.54% to 7,763.08, while Japan's Nikkei 225 gained 1.03% to 63,361.04.
President Trump Rejects Iran Peace Proposal
On Sunday, Trump dismissed Iran's response to a U.S.-backed peace proposal aimed at restarting negotiations. He took to Truth Social and wrote, "I have just read the response … I don't like it — TOTALLY UNACCEPTABLE!"
Netanyahu Says Iran War ‘Not Over' As Peace Talks Falter
Iran's response reportedly called for sanctions relief, an end to U.S. military pressure, compensation for war damages and guarantees against future attacks. Tehran also highlighted control over the Strait of Hormuz, where maritime disruptions have already strained global shipping. The failure to reach immediate consensus dampened hopes for a near-term diplomatic breakthrough.
In an interview with CBS News' Major Garrett, Israeli Prime Minister Benjamin Netanyahu said the conflict with Iran is "not over," despite significant military gains. He noted that Iran's enriched uranium stockpiles, nuclear infrastructure, regional proxies and ballistic missile capabilities remain unresolved concerns.
Taking to X, Iranian President Masoud Pezeshkian stated that Tehran would "never bow our heads before the enemy" and vowed to defend the nation's interests with strength and resolve.
