Oil prices retreated sharply on Friday after hitting $119 per barrel earlier in the week. Brent crude fell 1.5% to $107 as concerns over Middle East energy supplies eased following attacks on Iranian and Qatari facilities. The global benchmark had surged nearly 10% in 24 hours as investors worried about disruptions through the Strait of Hormuz, which handles one-fifth of global oil shipments.

U.S. gasoline prices rose to $3.88 a gallon, up 30% since the conflict began, while diesel climbed 36% to $5.10. Treasury Secretary Scott Bessent revealed the U.S. is considering un-sanctioning Iranian oil and releasing more strategic reserves to combat inflation. The Fed and other central banks maintained interest rates due to persistent price pressures from the energy crisis.

Asian stock markets stabilized on Friday with mixed performances across the region. South Korean and Chinese indexes gained while Vietnamese markets fell, with Japan closed for a holiday. The S&P 500 dropped 3.7% since the conflict began, with European stocks also declining as central banks signaled little room for rate cuts amid inflationary pressures from energy markets.