Oil Prices Tumble as Middle East De-escalation Fears Ease

Oil prices tumbled on Wednesday as investors grew more optimistic about de-escalation in the Middle East and the US shifting towards economic sanctions instead of immediate military action against Iran. The Brent crude price fell 2.5% to $86.22, while WTI dropped to $80.25.

The easing of geopolitical tensions contributed to lower bond yields, providing relief to broader financial markets. However, the focus is now on the July inflation report, with expectations that the Fed's preferred inflation gauge will remain at 3.2% on a yearly basis.

Gold and other assets like Copper, which is trading around $6.72, are benefiting from US trade tensions and the Treasury's expanded bond-buyback program announced last week. The immediate resistance for copper is around $6.73, while the main support lies at $6.66.