Iran Naval Blockade Threatens Oil Supplies Amid Easing Inflation Expectations

Commodity markets saw mixed trading on August 14, as oil prices inched higher after the US threatened to maintain a naval blockade of Iran indefinitely. This move revived concerns about crude supply, despite falling global demand.

Brent futures rose by 9 cents, or 0.1%, to $87.16 a barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 4 cents to $81.29 a barrel.

However, gold prices took a hit as easing inflation expectations bolstered the likelihood of the US Federal Reserve holding interest rates steady next month. Gold fell below $4,400 an ounce, with bullion dropping as much as 1.5% to $4,343.91 on Thursday.