Oil markets have whipsawed this week as investors parse the chances of a breakthrough agreement between Washington and Tehran that could potentially resume normal shipping through the crucial Strait of Hormuz.
Those hopes had been briefly dashed by new US military strikes on Iran Wednesday night, countered by the Revolutionary Guard's targeting of an American airbase in the region.
But by Thursday evening, negotiators had edged towards a deal to extend their fragile ceasefire for 60 days, pending approval from President Donald Trump, US sources told AFP.
That news reversed a sluggish start for shares on Wall Street, with major indices closing higher on the day.
Seoul led the charge in Asia on Friday, surging 3.6 percent while Tokyo's Nikkei closed at a record high. Sydney, Taipei and Hong Kong also saw healthy gains, while Shanghai lost 0.7 percent on the day.
After falling by more than one percent earlier in the day, the price of Brent crude was flat at $93.68 a barrel, while primary US benchmark West Texas Intermediate was 0.3 percent lower at $88.67 a barrel.
In Europe, London, Paris and Frankfurt were all higher.
Wall Street's advances on Thursday came despite several gloomy indicators, with the Federal Reserve's preferred inflation gauge rising in April to its highest since 2023 and first quarter economic growth being revised lower.
The combination of persistent inflation and slowing growth lowers the chances of interest rate cuts by the Fed, despite Trump's repeated calls for lower rates to boost the economy.
Still, "recession risks are easing as oil prices moderate and the probability of worst-case scenarios fades", wrote Matthew Martin of Oxford Economics.
"While reduced risks from the war have helped, the improvement in equity prices is mostly because of a robust earnings season. The driver is overwhelmingly AI-related capital expenditure," he said.
Global AI bullishness has driven a historic rally recently, this week pushing the market capitalisations of chipmakers Micron and SK hynix across the $1 trillion threshold.
In Europe, observers are awaiting a key gathering of leaders on Friday to discuss ways to address gaping trade deficits with China.
European Union commissioners will hold a debate on what the 27-nation bloc should do to defend the continent's companies from what Brussels describes as unfair competition from Chinese rivals.
Official data showed Friday morning that France's economy contracted 0.1 percent in the first quarter from the fourth quarter last year, a downward revision from its previous reading of zero growth.
- Key figures at around 0830 GMT -
Brent North Sea Crude: FLAT at $93.68 a barrel
West Texas Intermediate: DOWN 0.3 percent at $88.67 a barrel
Hong Kong - Hang Seng Index: UP 0.7 percent at 25,182.39 points (close)
Tokyo - Nikkei 225: UP 2.5 percent at 66,329.50 (close)
Shanghai - Composite: DOWN 0.7 percent at 4,068.57 (close)
London - FTSE 100: UP 0.2 percent at 10,446.78
Euro/dollar: DOWN at $1.1638 from $1.1647 on Thursday
Pound/dollar: DOWN at $1.3419 from $1.3441
Dollar/yen: UP at 159.28 from 159.25 yen
Euro/pound: UP at 86.73 pence from 86.66 pence
New York - DOW: UP 0.1 percent at 50,668.97 (close)
pfc/mtp