Trump rejects Iran proposal; OpenAI pause weighs on tech

Investing.com – U.S. stock futures fell on Monday as investors faced renewed uncertainty over the conflict involving Iran, a sharp rise in oil prices and fresh concerns about the pace and safety of artificial intelligence development.

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President Donald Trump’s rejection of an Iranian proposal to reopen the Strait of Hormuz added to energy-market worries, while OpenAI’s decision to pause training on some of its latest AI models weighed on technology sentiment.

1. U.S. futures fall as Iran and AI concerns weigh

U.S. stock futures moved lower on Monday as investors braced for further weakness in technology stocks following OpenAI’s decision to pause development of some advanced AI models.

By 03:50 ET, S&P 500 Futures had fallen 0.42% to 7,710.7 points, while the tech-heavy Nasdaq 100 Futures fell 1% to 30,595 points. Dow Jones Futures fell 0.4% to 51,9977 points.

The weakness came as investors also assessed renewed tensions between the U.S. and Iran, with Trump’s rejection of an Iranian ceasefire proposal helping push oil prices sharply higher in early Asian trading.

2. Iran says diplomacy is the only way forward as Hormuz uncertainty grows

Iran insisted Sunday that diplomacy is the only way to resolve its conflict with the U.S. and Israel after Trump rejected Tehran’s proposal to reopen the Strait of Hormuz and end the fighting.

Iran presented its peace proposal last week at the United Nations General Assembly in New York. Trump rejected the proposal, arguing that Iran’s push for an agreement reflected its difficult position in the conflict.

Trump said Iran wanted a deal to reopen Hormuz immediately because it was “losing so badly.”

Iran, however, said it would not soften its conditions for reopening the crucial shipping route.

The Strait of Hormuz is a critical route for global oil shipments. The longer uncertainty over the waterway lasts, the greater the risk that energy supplies remain disrupted, keeping oil prices elevated and adding to inflation pressures around the world.

3. Oil jumps above $105 as Hormuz uncertainty persists

Oil prices climbed more than 1% on Monday after Iran maintained its conditions for reopening the Strait of Hormuz following Trump’s rejection of its proposal.

Brent crude futures rose 1.1% to $105.48 a barrel, while WTI crude futures gained 0.8% to $93.12.

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