US-Iran tensions hit markets

On August 14, 2026, U.S. and European Union — European shares fell while oil prices rose more than $1 a barrel as markets monitored tense U.S.-Iran talks and digested new data that dented expectations for a United States — Federal Reserve rate hike next month. Faltering talks to end the Iran war left oil and gas prices poised for sizeable weekly gains, with the U.S. threatening to ramp up economic pressure on Iran, including extending a naval blockade. U.S. consumer sentiment deteriorated in early August amid rising living costs due to the Middle East conflict. A surprise drop in U.S. retail sales reduced expectations of a United States — Federal Reserve rate hike at next month's meeting, weakening the dollar and supporting gold prices. U.S. Treasuries fell after an initial rally lost momentum. The S&P 500 fell from record highs, pressured by declines in chip equipment maker Applied Materials and other chipmakers including Broadcom and Intel. European Union — European shares snapped a four-week winning streak. In currencies, the yen strengthened after a Reuters report that the Japan — Bank of Japan could raise rates as soon as September, but remained near the 160 level that could trigger intervention. Brent crude settled at $88.52 a barrel, up 1.67%, and U.S. crude at $82.40, up 1.42%. Spot gold rose 0.53% to $4,374.27 an ounce. The dollar index fell 0.28% to 99.65.