An abrupt surge in oil prices could cause inflation to rise and spark volatility in markets. Brent on Tuesday jumped to the highest level since November.

Oil prices fell in Asian trade on Friday, extending losses from the previous session, as concerns about supply risks eased after the likelihood of a U.S. strike on Iran receded.

Wall Street is bouncing back. The S&P 500 rose 0.6% Thursday and was on track to break the two-day losing streak it’s been on since setting an all-time high.

Uncertainty over military readiness and the stability of a post-regime Iran has led to a delay in any potential swift US military action, tempering geopolitical fears and causing commodity markets to tumble.

In a social media post on Tuesday, Trump said Venezuela would hand over 30 to 50 million barrels of oil to the U.S., which in turn would sell them at their market price. The resulting funds -- as much as $2.8 billion at current prices -- will “benefit the people of Venezuela and the United States,” Trump said.

"Unrest in Iran has added about $3-$4 a barrel in geopolitical risk premium in oil prices, in our view," Barclays analysts said in a note. Markets are also grappling with concern over additional crude supply hitting the market with a resumption in Venezuelan ​exports.

Wall Street was poised to open with gains on Thursday and oil prices tumbled 4% after U.S. President Donald Trump said he was told that plans for executions in Iran have stopped, even as Tehran signaled fast trials and executions ahead in its crackdown on protesters.