Global stocks fall, oil climbs as U.S.-Iran tensions persist and Fed hike bets fade

Global equities ended lower on Friday and oil rose more than $1 a barrel as investors tracked tense U.S.-Iran talks and a U.S. threat to intensify economic pressure on Iran, including extending a naval blockade. A surprise drop in U.S. retail sales and weaker early-August consumer sentiment reduced expectations of a Federal Reserve rate hike next month, pushing the dollar lower and lifting gold. The S&P 500, Nasdaq and Dow all slipped, European shares snapped a four-week winning streak, and Treasuries reversed an initial rally to finish lower. The yen strengthened after a Reuters report said the Bank of Japan could raise rates as soon as September, though it remained near levels that traders see as vulnerable to renewed intervention from Tokyo.

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