UK 10-year gilt yields rose to 5.4%, their highest level in nearly two decades, as oil prices climbed while hopes for progress in US-Iran talks faded. Iran said it would not ease its conditions for reopening the Strait of Hormuz after President Trump rejected its proposal. Trump said Iran had "overplayed its hand" and that negotiations could resume this week. Markets raised bets on tighter Bank of England (BoE) policy, pricing in an over 80% chance of a November rate hike. BoE Governor Andrew Bailey said last week that persistently high energy prices would make it harder to keep interest rates unchanged, while Monetary Policy Committee members Sarah Breeden and Clare Lombardelli also indicated increasing support for a hike. Chancellor John Healey is due to address the Labour Party conference before next month's Budget, with possible measures emerging that include reviving the Help to Buy scheme for first-time buyers.