Evening digest: US ramps up Iran pressure, gold gains on Fed hopes

The United States signaled plans to intensify economic pressure on Iran, including maintaining a naval blockade and imposing sweeping new sanctions, as tensions in the Middle East continued to escalate.

Gold headed for a weekly gain after softer US inflation data strengthened expectations that the Federal Reserve will keep interest rates unchanged next month.

Oil prices advanced on renewed concerns over supply disruptions in the Strait of Hormuz, while Bitcoin lagged broader financial markets as traders warned of a potential technical breakdown.

US planning economic tactics to pressure Iran

The Trump administration indicated it is preparing a significant escalation in economic pressure against Iran.

Treasury Secretary Scott Bessent said the United States would introduce economic measures "that have never been seen on Iran," combining broader economic isolation with the continued naval blockade of Iranian ports.

Bessent did not provide further details on the proposed measures.

The comments followed remarks by Defense Secretary Pete Hegseth, who said the US military could maintain its naval blockade of Iran indefinitely by rotating naval assets as needed.

The developments come as reports indicated the USS George Washington is replacing the USS Abraham Lincoln, whose deployment in the Middle East has extended well beyond its originally expected conclusion.

Separately, Hegseth rejected reports describing poor living conditions aboard the Abraham Lincoln.

However, Representative Mike Levin said he had written to Pentagon and Navy leaders expressing concern over reports from military families alleging deteriorating conditions, including supply shortages, sanitation issues and crew fatigue.

US Central Command also denied reports circulated by Iranian media claiming a deadly brawl had occurred aboard the carrier, stating no service members had died.

Gold price rises as weaker dollar supports bullion

Gold climbed on Friday and remained on track for a weekly gain after a weaker US dollar and easing expectations of a September Federal Reserve rate hike improved sentiment toward the precious metal.

Spot gold rose 0.5% to around $4,375 per ounce after falling in the previous session as investors booked profits following a two-month high. US gold futures settled 0.25% higher.

The move followed a week of US economic data showing inflation broadly in line with expectations and weaker-than-expected July employment figures.

Those reports reinforced expectations that the Federal Reserve will keep interest rates within the current 3.50% to 3.75% range at its next meeting.

According to CME FedWatch data, markets now assign roughly a 33% probability of a September rate increase, down significantly from the previous week.

Gold also received support from a weaker dollar, making bullion more affordable for overseas buyers.

Other precious metals also advanced during the session, with silver, platinum and palladium posting gains.

Oil price climbs on Iran tensions and supply concerns

Oil prices moved higher on Friday and were on course for solid weekly gains as geopolitical tensions in the Middle East continued to overshadow concerns about weaker global demand.

Brent crude rose to about $88.54 a barrel, while West Texas Intermediate crude traded near $82.34.

Both benchmarks were set to finish the week more than 4% higher.

The latest gains followed renewed warnings from the United States that it could maintain its blockade of Iran indefinitely while introducing additional economic measures against Tehran.

Supply concerns also intensified after two vessels operated by Abu Dhabi National Oil Company were attacked while transiting the Strait of Hormuz.

The incident came as shipping traffic through the strategic waterway remained below normal levels.

Further support came after crude exports from Russia's Sheskharis terminal at Novorossiysk were suspended following a reported drone attack, adding to disruptions in global energy supplies.

However, analysts noted that weaker demand forecasts from OPEC and rising US crude inventories continue to limit the upside for oil prices.

Bitcoin struggles despite improving inflation outlook

Bitcoin remained under pressure on Friday even as US equities continued to trade near record highs following encouraging inflation data.

The cryptocurrency traded around $62,770, down about 0.9% on the day and close to its lowest levels of August.

Market analysts noted that Bitcoin has failed to benefit from the improving macroeconomic backdrop that has supported stocks and reduced expectations for further Federal Reserve tightening.

Technical analysts warned that Bitcoin needs to reclaim the $63,220 level before the weekly close to avoid increasing the risk of a deeper decline.

Market observers also pointed to growing long positions in derivatives markets and rising open interest, suggesting the potential for additional volatility if prices continue to weaken.