Dow futures soared more than 500 points, buoyed by a sharp drop in oil prices and the release of consumer price index data that matched analysts' expectations. As of 8:06 p.m. Thailand time, Dow futures were up 542 points, or 1.04%, at 52,637. Global crude oil prices fell sharply, with West Texas crude dropping below 99 dollars per barrel, while Brent crude fell below 104 dollars per barrel. This followed reports that Arab Gulf states and Iran are scheduled to meet on September 14 in Salalah, Oman, to discuss a temporary agreement on regulating shipping through the Strait of Hormuz. It would be the first meeting of senior diplomats from the six member states of the Gulf Cooperation Council and Iran since the United States and Israel launched attacks on Iran on February 28. Meanwhile, the U.S. Labor Department reported that the headline CPI rose 3.4% in August from a year earlier, in line with analysts' expectations, after also rising 3.4% in July. On a monthly basis, it rose 0.4%, in line with expectations, after rising 0.1% in July. Core CPI rose 2.4% year on year, in line with expectations, after rising 2.5% in July. On a monthly basis, core CPI rose 0.3%, above analysts' expectations of 0.2%, after rising 0.2% in July.
Brent dropped below $104/bbl on reports of planned Gulf-Iran talks over Hormuz shipping, reducing supply-risk premium.
WTI fell below $99/bbl as Gulf states and Iran plan talks on regulating Strait of Hormuz shipping, easing supply-disruption fears.
