Oil Prices Rally Amid US-Iran Tensions, Deteriorating Consumer Sentiment

The US-Iran talks have been tense lately, and markets are reflecting that. Oil prices rose more than $1 a barrel on August 14, as investors monitored the situation. Brent crude oil futures settled at $88.52 a barrel, up 1.67 percent.

The threat of a naval blockade by the US against Iran weighed on global markets. The S&P 500 fell from record highs, under pressure from declining shares in chip equipment maker Applied Materials and other chipmakers like Broadcom and Intel.

A survey showed that US consumer sentiment deteriorated in early August due to rising living costs caused by the Middle East conflict. This reduced expectations of a Federal Reserve rate hike next month.