U.S. stock futures were higher in early European trading, as investors weighed signs of cooling U.S. inflation that might allow the Federal Reserve to hold interest rates, and ahead of PPI data due later Thursday. Oil was lower despite the U.S. and Iran appearing locked in a stalemate over any plan to reopen the Strait of Hormuz or enter peace talks.

President Trump has said the Strait of Hormuz is open and that the U.S. controls it, but traffic through the crucial waterway remains low.

"Claims and repeated posts by U.S. officials that the Strait of Hormuz is no longer blocked do not change the reality: the Strait of Hormuz remains blocked and will not be reopened until Iran's conditions are accepted," the Persian Gulf Strait Authority said in a statement on X.

Treasury yields were lower, while gold prices fell.

--U.S. futures were higher, with the Dow Jones Industrial Average, S&P 500 and tech-heavy Nasdaq all up 0.1%. Investors were weighing subdued U.S. inflation data, which came in broadly as expected and might have relieved some pressure for the Fed to tighten monetary policy. "The idea of a delayed Fed rate hike is giving a fresh boost to equity markets, along with a strong positive reaction to neocloud providers' strong revenue growth," Swissquote's Ipek Ozkardeskaya said.

--European indexes were mostly higher, boosted by the financial and technology sectors. However, London's FTSE 100 index was down 0.3% as miners fell after Antofagasta cut its production guidance for the year. Antofagasta shares were down 4.7%, and Rio Tinto, Fresnillo and Anglo American were down 4.2%, 4% and 2.7%, respectively. The Europe-wide Stoxx 600 index was up 0.1%, while Germany's DAX and France's CAC 40 were up 0.35% and 0.2%, respectively. Adyen was leading the Stoxx 600 index risers--up 9.1%-while Maersk and Pandora shares were also up 7.7% and 4.5%, respectively, after reporting earnings.

--Asian equities traded mixed Thursday amid the ongoing earnings season. South Korea's Kospi gained for the fourth consecutive session, closing 3.6% higher. Japan's Nikkei Stock Average ended 1.2% higher, led by electronics stocks. Hong Kong's Hang Seng Index dropped 0.3%, but the tech gauge rose 0.4%, fueled by a 19% advance by Lenovo after its results. Singapore's FTSE Straits Times Index and China's Shanghai Composite each declined 0.2%. The FTSE Bursa Malaysia KLCI slipped 0.3%.

--The dollar rose to a two-week high against a basket of currencies as ongoing U.S.-Iran tensions and the continued closure of the Strait of Hormuz supported safe-haven assets and kept oil prices elevated. The dollar briefly fell after data Wednesday showed U.S. inflation eased in line with expectations to 3.4% in July from 3.5% in June, prompting markets to trim expectations for a September interest rate rise by the Fed. This was "merely a continuation of the trend toward lower inflation, partly distorted by one-off effects" and the dollar's falls proved short-lived, Commerzbank's Michael Pfister said in a note. The DXY dollar index rose to as high as 100.083.

--Yields on U.K. government bonds, or gilts, were little changed following U.K. second-quarter GDP data. The U.K. economy expanded by 0.4% in the second quarter, albeit down from 0.6% growth in the first quarter, and in line with the consensus forecast by economists in a WSJ survey. The data suggested that, while growth has slowed from the strong start to the year, the U.K. economy "remains more resilient than many might have expected," Moneyfarm's Richard Flax said in a note. Ten-year gilt yields edged marginally lower to 4.961%, Tradeweb data showed.

--Treasury yields fell after Wednesday's U.S. inflation data. In addition, the high yield at an auction of 10-year Treasurys late Wednesday attracted investors. "Last night's new 10-year [Treasury] launched at the highest yield since 2007, attracting decent investor demand," Commerzbank's Hauke Siemssen said in a note. Attention turned to U.S. PPI data at 1230 GMT, where a benign reading could increase the odds of the Fed staying put next month, he said. The Middle East conflict and high oil prices remain a concern, however. The 10-year Treasury yield fell 1.4 basis points to 4.680%, Tradeweb data showed.

--Yields on eurozone government bonds edged higher as prospects of a U.S.-Iran peace deal faded, raising concerns about prolonged supply chain disruptions and inflation risk. Bond market investors were cautious as "Iran and the U.S. appear to harden their positions", Deutsche Bank Research strategists said in a note. Rises in yields are limited, however, after data Wednesday showed U.S. inflation fell in line with expectations. Ten-year Bund yields rose 0.5 basis points to last trade at 3.162%, Tradeweb data showed.

--Bitcoin rose slightly after Wednesday's U.S. inflation data. The data met forecasts but still marked two consecutive "relatively encouraging" core inflation reports and, combined with last week's weaker employment data, leaves less pressure on the Fed to act immediately in September, Deutsche Bank analysts said in a note. However, markets are still fully pricing a 25 basis-point rate rise by year-end, they said. Ongoing Middle East tensions also argue for continued caution. Bitcoin rose 0.5% to $63,833, LSEG data showed.

--Oil prices fell as investors assessed a weaker demand outlook and continued to monitor developments in the Middle East, though talks to reopen the Strait of Hormuz remained stalled. In early European trading, Brent crude was down 1.5% to $87.62 a barrel, while WTI futures declined 1.6% to $81.96 a barrel. The IEA estimated a deficit of 1.8 million barrels a day in the third quarter as higher fuel prices weigh on consumption, while OPEC also cut its demand-growth forecast. "Going forward, progress on restoring Hormuz traffic remains the key catalyst for prices, while tight global balances should keep oil supported despite signs that higher prices are beginning to weigh on demand," said Soojin Kim from MUFG.

--Gold prices eased in early European trading after rising in the previous session, as U.S. inflation data matched expectations. New York futures were down 0.8% to $4,433.80 a troy ounce, though they remained 3% higher on the week. "U.S. consumer prices increased just 0.1% month-on-month in July, suggesting that inflationary pressure from the earlier energy-price shock is moderating, while recent weakness in the labour market has further reduced the case for immediate tightening," said Soojin Kim from MUFG. Traders now await upcoming PPI data for further clues on the rate outlook.