Washington: Eight US Marines were injured in an Iranian cruise missile attack on a vessel they were operating in the Strait of Hormuz about two weeks ago, NBC reported, citing US officials.

The Marines were not seriously injured but suffered smoke inhalation and showed symptoms of possible traumatic brain injuries, including headaches and other concussion-like symptoms, the officials said.

The vessel was not a US Navy ship, and the officials did not disclose what type of vessel it was.

The development comes amid escalating tensions between Washington and Tehran over the strategic waterway, with US President Donald Trump rejecting Iran's latest proposal for a temporary ceasefire and the reopening of the Strait of Hormuz.

Oil prices rise as Trump rejects Iran's truce offer

Oil prices surged on Monday, with Brent crude climbing back above $106 a barrel, as Trump's rejection of Iran's proposal reignited concerns over global energy supplies and inflation.

The rise followed a decline of more than two per cent on Friday after news emerged of Iran's offer for a seven-day truce.

The proposal, presented by Tehran at the United Nations General Assembly last week, called for a halt to hostilities and the reopening of the Strait of Hormuz, a critical route for global energy shipments.

The waterway has become a focal point of the conflict between the United States and Iran. The situation has been further complicated by the Houthis' seizure of Yemen's entire Red Sea coast, including the Bab al-Mandab Strait, another major international shipping route.

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Trump rejected Iran's proposal while speaking to reporters outside the White House.

"I reject their proposal," he said.

However, the US president told Axios that he expected negotiations to resume.

"They want to make a deal, but it is not the deal that I want to make," he told the news platform. "It is what we would have maybe agreed to a year ago."

"They overplayed their hand," Trump added in the interview published on Sunday.

Citing sources familiar with the matter, Axios reported that indirect talks between Washington and Tehran could take place as early as Monday.

Iran, meanwhile, continued to insist on its conditions for reopening the Strait of Hormuz, including the release of frozen assets, the lifting of sanctions on its oil and an end to the US naval blockade.

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Asian markets mixed as energy and inflation concerns return

The renewed tensions weighed on Asian stock markets on Monday, while bond yields climbed as investors assessed the potential economic impact of higher energy prices.

Seoul's market fell more than two per cent when trading resumed after a long break. Tokyo, Shanghai, Manila, Bangkok and Jakarta also recorded declines.

Hong Kong, Sydney, Singapore and Wellington posted gains.

The average yield on a gauge of global bonds crossed four per cent last week for the first time since 2007, according to Bloomberg.

Rising oil prices have also brought inflation concerns back into focus ahead of the US Federal Reserve's next policy meeting at the end of October.

The CME FedWatch tool put the probability of a second consecutive interest rate hike at more than 65 per cent.

Before the meeting, investors are expected to assess the release of the Federal Reserve's preferred inflation gauge and a key jobs report, both of which could influence policymakers' decisions.

Markets watch for signs of renewed US-Iran talks

The prospect of further negotiations between Washington and Tehran remains a key factor for investors as the conflict continues to disrupt energy markets.

"Middle East tensions have flared again after President Donald Trump rejected Iran's latest proposal to reopen the Strait of Hormuz," wrote Stephen Innes at Quintex Intel.

"Oil has pushed higher, Asian equities are softer, and suddenly the brief Friday reprieve in global fixed income looks more like an intermission than the end of the show."

Still, he added: "The market is still pricing some probability that everyone eventually finds their way back to the table, even if they continue to spend the next few weeks shouting across it first."