WTI Crude Falls Below $90 as Iran Signals Hormuz Reopening
US stock futures rose while oil prices dropped below $90 after Iran indicated a potential end to the maritime blockade within seven days.
Key points
- WTI crude dropped below $90 per barrel after Iran suggested reopening the Strait of Hormuz within seven days.
- Alibaba shares rose 3.5 percent as the company announced plans to expand data center capacity to 20 GW by 2032.
- Paramount shares gained 2.5 percent after clearing final regulatory hurdles for its $110 billion Warner Bros. Discovery acquisition.
WTI crude futures fell below $90 per barrel after Iran signaled it could reopen the Strait of Hormuz within seven days. This development reduced fears of a prolonged energy supply shock and immediate inflationary pressure. Dow Jones futures rose 0.37 percent in pre-market trading on Tuesday, September 22.
A senior Iranian official stated that the blockade would lift if the US reduced military pressure. TradingKey noted that this shift in geopolitical risk appetite supported broader equity markets. Gold prices declined to near $4,320 per ounce as safe-haven demand weakened during the session.
Equity Movers Reflect AI Demand
Alibaba shares gained 3.5 percent following announcements at the Apsara Conference in Hangzhou. The company plans to expand global data center capacity to over 20 gigawatts by 2032. Its chip unit also released the Zhenwu V900, which offers three times the power of its predecessor.
Vicor surged 10 percent after raising its third-quarter growth guidance to over 20 percent. The upgrade followed licensing deals with four major original equipment manufacturers and hyperscalers. These agreements secured one-time royalty fees for its vertical power delivery technology.
Crypto Stocks Face Profit Taking
Bitcoin approached $86,000 but remained down more than 1 percent during the pre-market session. This intraday pullback triggered selling in related equities despite the asset staying above $85,000. Strategy shares fell 3.2 percent while Coinbase declined 2.9 percent in the early trades.
Robinhood dropped 2.5 percent as traders locked in gains from earlier volatility. The broader crypto sector faced pressure despite the stable price floor for Bitcoin. Market participants focused on the potential for further consolidation in digital assets.
Paramount Clears Regulatory Hurdles
Paramount rose 2.5 percent after settling disputes with twelve US states and the Writers Guild. These settlements removed the final major regulatory barrier for its $110 billion acquisition of Warner Bros. Discovery. The company agreed to increase domestic film and television production investment as part of the deal.
