Oil Prices Rise as Global Stocks Retreat Amid Uncertainty

NEW YORK: (News Desk) – Oil prices climbed while global stock markets mostly retreated on Friday as investors remained cautious amid uncertainty surrounding the Middle East conflict and the outlook for the US economy.

Oil prices turned higher as concerns over the Strait of Hormuz added to market volatility. US and Iranian officials continued to assert control over the key shipping route, which has seen tanker traffic severely disrupted since US and Israeli strikes on Iran nearly six months ago.

On Wall Street, the S&P 500 slipped after reaching a fresh record high on Thursday. Most European markets also closed lower, while Asian stocks delivered a mixed performance.

Investor sentiment was further affected by weaker-than-expected US economic data. US retail sales fell 0.6 percent in July from the previous month to $763.6 billion, raising fresh concerns about consumer spending and economic growth.

A University of Michigan survey also showed US consumer sentiment declining by around 8 percent in August, ending two consecutive months of improvement. Survey director Joanne Hsu said the decline was particularly pronounced among older and lower-income consumers and people without college degrees, groups considered more vulnerable to the effects of inflation.

The softer economic data strengthened expectations that the Federal Reserve may maintain its current interest-rate stance rather than move towards tighter monetary policy. However, analysts cautioned that weaker consumer spending could also signal growing pressure on the US economy.

“Investors should be careful what they wish for,” said Bret Kenwell, an investment analyst at eToro, noting that economic resilience depends heavily on continued consumer spending.

Meanwhile, persistent uncertainty surrounding the US-Iran conflict, oil prices and inflation kept investors focused on developments in the Middle East.

Cresset Capital’s Jack Ablin said investors were continuing to monitor oil prices, developments in the region and movements in US Treasury markets following a weak auction earlier in the week. He also noted that trading activity was subdued as the summer vacation season kept many investors away from the markets.

Technology stocks and the enormous investment surrounding artificial intelligence remained another major focus.

Shares of semiconductor equipment maker Applied Materials fell more than five percent despite the company reporting record quarterly sales of $9.1 billion, as investors appeared to have been expecting stronger results.

By contrast, SanDisk shares jumped 7.4 percent after an investor presentation highlighted the company’s potential to benefit from growing demand linked to artificial intelligence.

Asian markets were mixed, with Seoul’s Kospi index gaining more than two percent as chipmakers SK hynix and Samsung extended their recovery from last month’s selloff.

Tokyo also finished higher, supported by gains in technology companies including Kioxia, Advantest and Sony, while technology investment giant SoftBank also advanced.

Market Closing Figures

Commodity & Currency Moves

• Brent crude: ↑ 1.7% to $88.52 per barrel
• WTI crude: ↑ 1.4% to $82.40 per barrel
• Euro/dollar: $1.1567, up from $1.1528
• Pound/dollar: $1.3535, up from $1.3487
• Dollar/yen: 159.38 yen, down from 159.50
• Euro/pound: 85.46 pence, down from 85.48