Oil prices rally, US data dents chances of Fed rate hike

U.S. and European shares declined on Friday as markets observed tense U.S.-Iran negotiations and considered new data that undermined hopes for a Federal Reserve interest rate increase next month. The possibility of a naval blockade against Iran by the United States heightened tensions in oil and gas markets, prompting a surge in prices.

Simultaneously, U.S. consumer sentiment declined in early August due to the escalating Middle East conflict, which contributed to a weaker dollar and higher gold prices. The Federal Reserve's rate hike expectations further diminished following a surprise drop in U.S. retail sales, causing the S&P 500 to retreat from its record highs and end the session at 7,785.76 points.

Major chip manufacturers such as Applied Materials, Broadcom, and Intel also witnessed a drop in share prices. Overall, the Nasdaq suffered a 0.28% decline, reaching 26,729.16 points, while the Dow Jones Industrial Average experienced a 0.20% decrease, closing at 53,732.41 points.