Oil prices rally as US data dents Fed rate hike hopes

What happened

On Aug 14, oil prices rallied over US$1 a barrel amid tense US-Iran talks, while US shares fell. The S&P 500 dropped 0.17% to 7,785.76 points, the Nasdaq declined 0.28% to 26,729.16 points, and the Dow Jones fell 0.20% to 53,732.41 points. Brent crude settled at US$88.52 a barrel (+1.67%), and US crude futures settled at US$82.40 (+1.42%). The US dollar fell, and spot gold rose to US$4,374.27 an ounce.

Why it matters

New data reduced expectations for a Federal Reserve rate hike next month. Geopolitical uncertainty remains a major roadblock to market tailwinds from earnings and monetary policy outlook.