The dollar climbed in Asia on Monday on signs that talks between the United States and Iran were deadlocked, leaving the vital Strait of Hormuz all but shut and sending oil prices higher.US stock futures wobbled and in Asia gains in a handful of AI-related stocks lifted share markets in Seoul and mainland China.
President Donald Trump on Sunday rejected Iran's response to a US proposal for peace talks to end the war, saying Tehran's demands were "totally unacceptable."
An Iranian plan sent to the US stressed the need for an end to the war on all fronts and the lifting of sanctions on Tehran, along with reparations and a recognition of Iran's control of the Strait, Iranian media reported.
"The conflict in the Middle East is now entering its 11th week," noted Bruce Kasman, global head of economics at JPMorgan. "Energy prices have surged but remain at levels that are headwinds rather than expansion-ending obstacles."
"The risk of a sharper move rises with each week the Strait of Hormuz stays closed, and our commodities team sees operational stress levels starting sometime in June."
