Hormuz Hopes Lift Stocks as Oil Prices Drop

Global stocks inched up on Wednesday as oil prices dropped due to hopes that the Strait of Hormuz could soon reopen. The Strait, which handles a fifth of the world's traded oil, has been affected by the six-month conflict between Iran and Oman.

Iran and Oman announced they had discussed a joint temporary navigational corridor through the Strait, with plans to clear it of mines. This news led to Brent crude futures falling for a third straight day, down nearly 3% to $85.95 per barrel.

The decline in oil prices pushed short-term bond yields lower, with the yield on 2-year German bonds dropping to a more than one-week low of 2.771%. The U.S. Personal Consumption Expenditures Price Index is due out at 1230 GMT, which could provide insight into the Federal Reserve's monetary policy trajectory.

Nvidia is set to report its second-quarter earnings after the market close, with investors looking for signs that the AI spending boom is sustainable and profitable. Options data suggests a smaller move in Nvidia's shares compared to previous profit announcements.