The Business Times (Singapore)

Trump Peace Bid Cools Oil Prices, but Nvidia Earnings and Inflation Fears Loom Large

President Donald Trump announced a pause to the planned U.S. strike on Iran, citing a new diplomatic overture that could lead to a nuclear deal. The news sent Brent crude futures down almost 2% to just under $110 a barrel and U.S. crude to about $107, easing the energy‑price shock that had been driving a sharp bond sell‑off. The oil‑price retreat helped global bond yields stabilize, while equity markets remained mixed: the MSCI Asia‑Pacific ex‑Japan index slipped more than 1%, Japan’s Nikkei edged up 0.3%, South Korea’s Kospi fell over 4%, and China’s CSI300 lost 0.8%. Investors now focus on Nvidia’s earnings report due tomorrow, with expectations that the AI leader will set the tone for tech stocks. Meanwhile, UK jobs data is slated for later today, and G7 finance ministers in Paris warned of rising sovereign‑debt pressures and potential rate hikes to curb inflation. Trump’s comment that there is “a good chance of a nuclear deal” was the catalyst for the oil move, while the dollar modestly rose to 158.99 yen amid safe‑haven demand. Spot gold slipped 0.5% to just above $4,500 an ounce as higher bond yields pressured the metal. G7 officials highlighted the need for tighter monetary policy to address a resurgence in inflation driven by lingering energy price volatility. The episode underscores how geopolitical shifts can quickly reshape commodity markets, influencing bond yields and equity sentiment. With Nvidia’s results looming and central banks poised to tighten, investors must balance short‑term volatility against longer‑term inflation and growth risks.