Oil prices have risen after United States President Donald Trump rejected an Iranian proposal for a seven-day truce, raising concerns about inflation and disruptions to global energy supplies.

Iran had proposed a temporary halt in hostilities at the United Nations General Assembly, with plans to reopen the Strait of Hormuz, a major route for global oil shipments.

Trump rejected the proposal but said negotiations with Iran could resume, while Tehran maintained that sanctions must be lifted and frozen assets released before the strait can be reopened.

Following the development, Brent crude rose by more than three per cent to above 107 dollars a barrel, while US crude also gained more than two per cent.

The renewed rise in oil prices affected global markets, with several Asian stock markets recording losses on Monday.

Investors are also watching upcoming United States inflation and employment data, which could influence the Federal Reserve’s next interest-rate decision.