Аctions emerging-market equities declined, weighed by higher oil prices and global bond yields after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz. An MSCI Inc. gauge for developing-economy stocks fell as much as 0.8% on Monday to its lowest in a week, led by chipmakers. South Korea’s benchmark Kospi Index plunged 2.6% as markets reopened after a holiday, while Taiwan remains shut.

Oil gained to about $106 a barrel while US Treasuries slipped after Trump’s rejection of Iran’s proposal renewed concerns about Middle East tensions. Tehran stuck to its seven-day plan for reopening the key waterway, saying it won’t soften its conditions. The dollar rose against most of its major peers.

An MSCI index for emerging-market currencies edged higher, with the South Korean won and offshore Chinese yuan gaining. The Thai baht lagged peers as Prime Minister Anutin Charnvirakul awaits the Constitutional Court ruling on a challenge to the validity of the February election that brought Bhumjaithai to power. An adverse ruling could force Thailand back to the polls within months, ending a period of unusual political stability and delivering another shock to an already fragile economy. “We expect dollar/baht to trend higher into year-end, with the baht facing depreciation pressure from higher oil prices, elevated US rates and softer gold prices,” Barclays Bank Plc. strategists, including Mitul Kotecha, wrote in a note. “Thailand remains vulnerable to a higher energy import bill,” they said.