The price of oil rose on Friday after the U.S. said it had destroyed an Iranian drone near the Persian Gulf, where a lot of the world's oil is shipped through. Stock markets were largely stable as investors monitor earnings and the ongoing trade talks between China and the U.S. Energy prices were ratcheted higher after U.S. President Donald said a U.S. warship had downed an Iranian drone that had been threatening. While Iran denied the incident, it's the latest incident to increase tensions and uncertainty in the region, where oil tankers have been attacked or threatened. About 20% of all oil traded worldwide passes through the Persian Gulf, so investors are aware of the potential for disruptions to ship traffic. The U.S. benchmark for crude oil advanced 71 cents, or 1.3%, to $56.01 per barrel in electronic trading on the New York Mercantile Exchange. Brent, the international oil standard, picked up 98 cents, or 1.6%, to $62.91 per barrel. Stock markets were mixed, with Britain's FTSE 100 shedding 0.1% to 7,484 and the CAC 40 in Paris falling by the same rate to 5,543. In Germany, the DAX rose less than 0.1% to 12,236. Wall Street looked set for small gains, with the future for the Dow Jones Industrial Average up 0.2% and the future for the S&P 500 adding 0.1%. Reports that Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer spoke with their Chinese counterparts as planned, with more talks to come, helped ease some concerns over the deepening trade war between Washington and Beijing. The standoff over China's longstanding trade surpluses and its policies aimed at building up advanced high-tech industries has added to concerns over slowing demand and weaker Chinese growth. Expectations that the U.S. Federal Reserve will move quickly to cut interest rates have also helped buoy sentiment recently. Comments by the president of the Federal Reserve Bank of New York, John Williams, suggesting central banks need to 'take swift action' when conditions turn adverse, have whetting investors' appetites for buying, analysts said. 'Investors are highly sensitive to dovish comments from Fed presidents these days, as they are trying to figure out whether the Fed would lower its interest rates by 50 basis points by the end of this month,' Ipek Ozkardeskaya of London Capital Group said in a report. 'Given that a 50-basis-point cut would trigger a further rally in global equities, any remark of dovish nature translates immediately into higher asset prices,' she said. In Asian trading, Japan's Nikkei 225 index jumped 2% to 21,466.99 while Hong Kong's Hang Seng climbed 1.1% to 28,765.40. The Shanghai Composite index rose 0.8% to 2,924.20, while in South Korea, the Kospi added 1.4% to 2,094.36. India's Sensex slipped 1.3% to 38,390.88. Shares rose in Taiwan and Southeast Asia. Investors are looking ahead to corporate earnings. So far, in the U.S. the results have been mixed, though only about 13% of S&P 500 companies have reported, according to FactSet. Analysts expect profits to fall 2.4% overall by the time all reports are tallied. In currencies, the dollar rose to 107.60 Japanese yen from 107.30 yen on Thursday. The euro weakened to $1.1239 from $1.1279.