Oil and Treasury yields climbed Monday as tensions in the Middle East persisted with the Strait of Hormuz remaining closed. President Trump rejected Iran's response to U.S. peace proposals, escalating concerns about potential disruptions to global oil supplies. The uncertainty sent energy markets higher while investors sought safety in government bonds.

U.S. stock futures moved lower after last week's rally, reflecting the cautious sentiment. Markets await Tuesday's inflation data for insights into Federal Reserve policy expectations. Later this week, Trump's meeting with Chinese President Xi Jinping will address the Middle East conflict, potentially influencing market sentiment.

The geopolitical developments come as markets already face uncertainty from trade negotiations and monetary policy. Iran's rejection of U.S. terms suggests prolonged tensions in one of the world's most critical shipping lanes. Energy traders will monitor any developments that could affect global oil supplies and prices.