At the close, the Dow Jones Industrial Average had risen 0.6 percent, the broad S&P 500 index had climbed 0.4 percent and the tech-heavy Nasdaq had gained 0.2 percent.
Whether the US and Iran are nearing an agreement to end the war remains unclear.
"What the market is telling you today is that it is much more concerned about missing out on some kind of peace deal in the Middle East than it is about going long over the weekend," analyst Steve Sosnick told CNBC.
The oil price moved slightly higher on Friday but remains below peaks reached earlier in the week.
At 10 p.m., a barrel of North Sea oil was trading for just over $103 per barrel.
