NEW YORK — Skepticism that the U.S. and Iran will reach a ceasefire any time soon pushed oil higher while sending stocks and bonds down, extending a month of volatile trading since the war began.

After briefly trimming losses when Iran reiterated its terms for a deal, the S&P 500 fell 1.7% as President Donald Trump said he wouldn’t commit to an agreement. The equity gauge hit its lowest since September. Brent settled around $108. Higher energy prices stoked fears about inflation, deepening a decline in Treasuries, which also dropped amid a lackluster U.S. sale of notes.

As the war grinds on, each side has kept up attacks even amid renewed efforts to jawbone the other into a resolution.

Trump threatened Iran with intensified military action after Tehran rejected Washington’s push for a peace deal, with the two sides far apart in efforts to end the war. Until Iran agrees to stop the conflict, the U.S. will “keep blowing them away,” the American president said.

Iran responded to a ceasefire proposal through intermediaries overnight, the semi-official Tasnim news agency reported, and is now awaiting a reply. Tehran has a string of conditions for ending the conflict, one of which is a guarantee that the U.S. and Israel won’t resume their attacks.

Trump had set a deadline for Iran to negotiate an agreement to end the war by the end of the week, though the ongoing impasse has raised questions about the likelihood for a deal in that time frame.

“The progress being made in the talks between the U.S. and Iran seems to be sketchy at best,” said Matt Maley at Miller Tabak.

The U.S. and Israel began a bombing campaign in Iran almost a month ago, leading Tehran to effectively close the Strait of Hormuz, snarling the flow of oil and roiling markets. Trump noted that Tehran has allowed 10 oil tankers to sail through the vital waterway.

Treasury Secretary Scott Bessent said a U.S. insurance program meant to boost shipping through the Strait will begin soon, a move that may help revive flows of much of the world’s oil and gas supplies.

Brent, the global crude benchmark is on pace for a monthly gain of almost 50% as the conflict engulfs the energy-rich Middle East and sends shockwaves through the global economy. The near-total closure of Hormuz has meant millions of barrels of lost daily oil output, while supercharging product prices from diesel to jet fuel.

“The war in Iran and the resulting surge in oil prices continue to dampen risk appetite,” said Adam Turnquist at LPL Financial. “Any sustainable market recovery will require meaningful progress toward a peace agreement and a reopening of the Strait of Hormuz.”

Corporate highlights:

—Memory chip stocks extended their losses on Thursday after Alphabet Inc.’s Google publicized research on a new algorithm that could allow more efficient use of the storage needed for artificial-intelligence development.

—Microsoft Corp. executives in recent weeks told managers at major divisions to suspend new hiring, The Information reported, citing three current employees with direct knowledge of the decision.

—Apple Inc. plans to open Siri to outside artificial intelligence assistants, a major move aimed at bolstering the iPhone as an AI platform.

—Macy’s Inc. has launched an AI-powered shopping assistant that’s upped spending online among those using the new tool, part of the company’s multiyear effort to reverse a sales decline.

—Hertz Global Holdings Inc. and Avis Budget Group Inc. climbed as chaos at U.S. airports due to the partial government shutdown spurred speculation that more travelers would rent cars instead.

Some of the main moves in markets:

Stocks

—The S&P 500 fell 1.7% as of 4 p.m. New York time

—The Nasdaq 100 fell 2.4%

—The Dow Jones Industrial Average fell 1%

—The MSCI World Index fell 1.6%

Currencies

—The Bloomberg Dollar Spot Index rose 0.4%

—The euro fell 0.3% to $1.1521

—The British pound fell 0.4% to $1.3312

—The Japanese yen fell 0.2% to 159.84 per dollar

Cryptocurrencies

—Bitcoin fell 3.5% to $68,504.2

—Ether fell 5.5% to $2,047.55

Bonds

—The yield on 10-year Treasuries advanced nine basis points to 4.42%

—Germany’s 10-year yield advanced 12 basis points to 3.07%

—Britain’s 10-year yield advanced 14 basis points to 4.97%

Commodities

—West Texas Intermediate crude rose 4.2% to $94.15 a barrel

—Spot gold fell 3.2% to $4,363.93 an ounce

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