Oil prices dropped sharply on Monday after US President Donald Trump played down the possibility of renewed strikes on Iran, while gold advanced as easing crude prices reduced inflation concerns.
Nvidia shares fell as the company launched an investigation into reports involving CEO Jensen Huang, and Tesla CEO Elon Musk defended the decision to wind down Cybertruck production next year, saying the move was not driven by profitability concerns.
Oil prices fall as Trump downplays fresh Iran strikes
Oil prices extended last week’s decline on Monday after Trump said he was highly unlikely to order fresh attacks on Iran as long as negotiations to end the conflict continued.
Brent crude futures fell 5.68% to $92.80 a barrel, after touching an intraday low of $92.40.
US West Texas Intermediate futures declined 4.47% to $85.91.
The decline followed a 16% weekly plunge in Brent prices, its steepest weekly drop since the beginning of the Covid-19 pandemic.
Investors have increasingly priced in the possibility of de-escalation, although attacks on vessels near the Strait of Hormuz continued.
The situation remains uncertain, with Iran saying it would not negotiate without practical steps from Washington to meet its conditions.
Saudi Arabia and Oman also stressed the importance of diplomatic efforts to safeguard maritime security.
Supply concerns have also eased.
JP Morgan estimated the global oil surplus at around 1.4 million barrels per day in October, while a Reuters survey showed OPEC production increased by 1.38 million barrels per day to 22.87 million bpd.
However, attacks on shipping and Saudi energy infrastructure continue to pose risks.
A fire was extinguished after Saudi Arabia’s East-West pipeline was struck, although operations were not affected.
Gold rises as lower oil prices ease inflation concerns
Gold prices climbed on Monday as a weaker US dollar and declining crude prices supported bullion, with investors looking ahead to US inflation data.
Spot gold gained 1.49% to $4,126.06 an ounce, while US gold futures for December delivery settled 1.6% higher at $4,140.70.
Lower oil prices helped ease concerns that energy costs would keep inflation elevated and force central banks to maintain restrictive monetary policies.
A weaker dollar also made gold more affordable for overseas buyers.
Gold had gained around 5% last week amid hopes that the US midterm election results could support efforts to end the conflict with Iran.
However, stronger-than-expected US employment data subsequently reinforced expectations of higher interest rates.
Markets currently see an 84.5% probability of a Federal Reserve rate increase in December, according to CME’s FedWatch tool.
Investors are awaiting US consumer price data on Tuesday and producer price figures on Friday for further clues about the central bank’s policy outlook.
Nvidia investigates reports involving CEO Jensen Huang
Nvidia shares fell 5.2% on Monday after the company announced an independent investigation into reports that CEO Jensen Huang had been targeted by a foreign intelligence operation.
The company’s independent directors and outside lawyers will examine the reports.
Nvidia said it had no reason to believe confidential information had been compromised and reaffirmed its confidence in Huang.
The development adds uncertainty for the chipmaker ahead of its November 17 earnings report, with shares already under pressure from concerns about AI valuations and the financing required for data-centre expansion.
The investigation also follows reports concerning Huang’s relationship with Alice Huang, a former executive at Singapore-based Megaspeed, which buys Nvidia chips.
US authorities have reportedly investigated suspected Chinese intelligence links, while Megaspeed faces separate scrutiny over restricted-chip exports.
Tesla to wind down Cybertruck production in eight months
Tesla CEO Elon Musk defended the company’s decision to wind down Cybertruck production in approximately eight months, rejecting reports that the move was driven by poor sales or unprofitability.
In a post on X, Musk said the Cybertruck’s order rate exceeded its production rate and that Tesla would try to build as many vehicles as possible before shutting down the production line.
He added that the company would have to return deposits to many customers.
Musk said the decision reflected the opportunity cost of continuing to manufacture the vehicle rather than expanding production of the Cybercab, Tesla’s planned autonomous vehicle.
Tesla sold 20,237 Cybertrucks in the US last year, down 48% from 38,965 in 2024, according to figures cited by Reuters.
The number was also well below Musk’s earlier annual sales prediction of 250,000 vehicles.
Musk said expanding factory capacity was difficult, arguing that Tesla needed to prioritise scaling Cybercab production.
AI disclosure: AI tools assisted with research and drafting of this piece. An ICD editor reviewed the facts, sources and wording before publication. Any opinions or analysis are Invezz’s, not those of an automated system.
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