(Bloomberg) — Investors riding a scorching run of market momentum are likely to face a reality check when trading resumes in Asia after President Donald Trump rejected the latest peace offering.

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Trump labeled Iran’s latest response to his proposal to end the 10-week conflict with the US is “TOTALLY UNACCEPTABLE.” Iran offered to transfer some of its stockpile of highly enriched uranium to a third country in its response to the latest US proposal to end 10 weeks of war, but rejected the idea of dismantling its nuclear facilities, the Wall Street Journal reported. Iran disputed the report, according to Iran’s semi-official news agency Tasnim.

Highlighting ongoing tension in a conflict that has killed thousands and driven up oil prices, a drone strike on Sunday briefly set a cargo vessel ablaze off Qatar in the Persian Gulf.

The dollar was higher against major peers in early trading. Futures trading in stocks, bonds and energy resumes in earnest at 6 p.m. New York time on Sunday.

“Trump’s rejection of Iran’s latest peace plan sees the week beginning in a ‘risk-off’ mode, reversing some of the price action we saw last week,” said Jason Wong, a strategist at Bank of New Zealand. “This can extend in early trading.”

Trump has proposed that Iran permit passage through the Strait of Hormuz and Washington end its blockade on Iranian ports in the next month.

Global stocks surged last week, pushing the S&P 500 and Nasdaq 100 to fresh records, while 10-year Treasury yields rose and crypto jumped. A solid US employment report, along with a drumbeat of strong corporate results, has bolstered speculation that the world’s largest economy remains resilient in the face of energy stress triggered by the Iran war.

“With the earnings season now largely behind us, investors’ focus remains firmly on the Strait of Hormuz and whether tanker traffic through this critical chokepoint improves,” said Julien Lafargue, chief market strategist at Barclays Private Bank and Wealth Management. “Recent developments have been modestly encouraging.”

About 82% of the S&P 500’s companies have beaten first-quarter profit estimates, according to data compiled by Bloomberg.

Across markets, the success of the momentum strategy — piling into recent winners, effectively — has become a defining feature. Junk bonds and crypto have been drawn in, and one momentum index in equities closed Friday near the highest since the global financial crisis. A gauge of chipmakers jumped 11% in five sessions.