US-Iran disagreement persists over Hormuz deal, US stock market falls

The US stock market came under pressure on Monday as a key disagreement between the United States and Iran remained unresolved in talks to reopen the Strait of Hormuz.

With the standoff now in its eighth month, mediators have intensified indirect talks with both sides to reach a resolution. Under the proposed plan, the waterway would be reopened and the US blockade lifted in a first phase, after which agreement would be sought on sanctions and nuclear issues.

According to the draft under discussion, Iran would reopen the waterway through a separate understanding with Oman, with the movement of commercial vessels managed on a temporary basis. Earlier attempts to safely operate ships through the waterway had not succeeded.

President Donald Trump had initially rejected an Iranian proposal to reopen the waterway within a week. Iran has demanded the lifting of the port blockade, the release of frozen assets, and exemptions from sanctions on oil sales.

Amid concerns over disrupted oil supply, crude oil prices rose sharply in early trading on Monday before easing somewhat later. The yield on the US 10-year Treasury note rose 7 basis points to about 5.25 percent, its highest level since mid-2007.

The yield on the 30-year Treasury note reached about 5.6 percent, while the 2-year note reached about 4.916 percent, raising concerns that interest rates in the US could rise.