Oil prices slid in early European trade on fresh Middle East optimism, sending global benchmarks below $87 a barrel after Iranian and Omani diplomats discussed a framework to resume shipping through the Strait of Hormuz. Brent crude fell 2.5% to $86.38 a barrel, while WTI dropped 2.6% to $80.20. Nasdaq futures declined 0.25% as investors positioned ahead of Nvidia’s earnings and U.S. inflation data. U.S. stock futures largely pulled back, with Dow Jones flat, S&P down 0.1%, and Nasdaq down 0.25%.

Asian and European equities gained on lower oil prices, with South Korea’s Kospi up 1.0%, Hong Kong’s Hang Seng up 0.75%, and China’s Shanghai Composite up 0.6%. In Europe, the Stoxx 600 rose 0.1%, led by bank gains, while software and AI-linked stocks weakened ahead of Nvidia. The U.S. dollar edged higher, and Treasury yields increased slightly, with the 10-year up 0.6 bps to 4.643%.

Investors await July PCE inflation data and the second estimate of Q2 GDP growth, with Nvidia’s results after market close Wednesday seen as a key barometer of the AI trade.