Oil Prices Plummet as Mideast Hopes Rise

Oil prices continued their downward trend on Wednesday as investors became more optimistic about a potential resolution to the Middle East crisis. The Brent North Sea Crude price fell by 1.9% and the West Texas Intermediate price dropped by 2%. This decline comes after last week's spike in oil prices, which had sent inflation fears soaring and pushed the yield on long-dated US Treasuries to its highest level since 2007.

Analysts believe that the recent diplomatic efforts between Iran and Oman may be a sign of progress towards reopening the Strait of Hormuz, which has been closed due to tensions between the US and Iran. Pakistan's Interior Minister Mohsin Naqvi reported a 'positive and productive meeting' with Iran's president on Monday.

Meanwhile, traders are keeping an eye on Nvidia's earnings report on Wednesday, which is expected to provide insight into the health of the AI boom that has driven market growth over the past two years. The chipmaker's stock price may be affected by its guidance for future quarters, with some analysts warning that a modest beat in the second quarter could still lead to a sell-off if the third-quarter outlook is disappointing.