U.S. consumer inflation rose 0.1% month on month and 3.4% year on year in July, in line with expectations, while core inflation eased to 2.5%, its lowest level since February, reinforcing expectations that the Federal Reserve may not need to tighten policy in September. Treasury yields and the dollar eased as lower oil-demand forecasts from OPEC and the International Energy Agency added to disinflation hopes, with the 10-year yield around 4.671%-4.68% and the DXY near 99.895-99.9. Markets remained cautious because geopolitical uncertainty in the Middle East limited relief from the inflation data. Pakistan said the United States and Iran had allegedly agreed to extend the 60-day ceasefire under the Islamabad Agreement, which is due to expire on Aug. 17, though talks over the length of any extension were still continuing. President Donald Trump said Washington has full control over the Strait of Hormuz, while Tehran said the waterway would not be reopened until its conditions were met. Oil prices, gold and U.S. yields moved lower, while equities were supported by artificial-intelligence-linked earnings. October Brent crude slipped 0.3% to $88.7 a barrel, gold fell 0.3% to $4,394 per ounce, the S&P 500 rose 0.26% and the Nasdaq added 0.54%. Investors next looked to U.S. producer-price data for further clues on inflation and rate policy.