Oil Prices Surge as US-Iran Tensions Escalate and Fed Rate Hike Expectations Plummet

Global markets experienced a mixed day on Friday, as oil prices rose and US data dented expectations of a Federal Reserve rate hike. The U.S.-Iran tensions left oil and gas prices poised for sizeable weekly gains. Brent crude oil futures settled at $88.52 a barrel, up 1.67%, while US futures finished at $82.40, up 1.42%.

The US dollar fell on a surprise drop in US retail sales, supporting gold prices. Spot gold rose 0.53% to $4,374.27 an ounce, while US gold futures settled 0.4% higher at $4,437.30.

Thomas Martin, senior portfolio manager at GLOBALT Investments in Atlanta, attributed some market drivers to AI-related factors. However, Kyle Rodda from Capital.com noted that geopolitical uncertainty remains the only major macro roadblock to a strong market experiencing tailwinds from earnings and monetary policy outlook.