Markets Steady as Middle East Tensions Ease, Oil Prices Drop

In a notable shift, stock markets ticked higher on Friday as oil prices headed for their steepest daily drop since April. This followed an announcement by President Donald Trump delaying a decision on U.S. military involvement in the ongoing Israel-Iran conflict.

Major European indexes surged between 0.5% and 1.4% after similar gains in Asia, although the week's Close saw a second consecutive weekly decline for MSCI's main world index. Tensions in the Middle East, although still present, appeared to ease with the White House signaling a two-week deliberation period before the U.S. decides on direct military involvement. European diplomats continue to engage in diplomatic talks with Iran regarding its nuclear program.

The relieved sentiment in financial markets was evident, with oil prices dropping as low as $76.10 per barrel. The decline in Brent crude futures reflects traders' reduced fears of an imminent escalation in the conflict, according to MUFG strategist Derek Halpenny.

(With inputs from agencies.)