Brent oil prices stayed range-bound with the crude back above $107 a barrel on dampened hopes of traffic resuming via the Strait of Hormuz soon, according to Commerzbank Research in a note.
President Donald Trump announced that he will determine whether to restart peace negotiations with Iran, while Tehran has signaled it won't participate until its demands are satisfied, wrote Commerzbank.
Treasuries come under pressure again in late New York on Monday and Asia early Tuesday, with the 10-year yield rising above 5%, said the bank. The US dollar continues to maintain its strength.
In the United States, the Supreme Court dismissed President Trump's attempts to limit mail-in ballots for the upcoming midterm elections. In environmental policy, the US Environmental Protection Agency (EPA) rescinded the greenhouse gas emission standards for power plants.
In the Artificial Intelligence sector, President Trump criticized recent slowdown plans, calling them a "hoax."
European Central Bank President Christine Lagarde highlighted the urgency of swiftly developing and financing AI, warning that failing to close the data center gap could result in costs of up to 600 billion euros. Meanwhile, ECB policymaker Boris Vujcic warned of "rapid" market re-pricing due to unsustainable fiscal positions, said Commerzbank.
In addition, an ECB staff committee has called for clarity on the possible early departures of Lagarde and Executive Board member Isabel Schnabel, according to the Financial Times.
In Asia, China's industrial production growth surpassed expectations, although retail sales remained sluggish in August, added Commerzbank.