(AP) -- Oil prices fell more than $1 a barrel Friday from record levels set a day earlier on hopes that tensions surrounding Iran's nuclear program could ease and cut the chances of American or Israeli military action against OPEC's second-largest oil producer.

European markets fell and Asian markets were mixed Friday as investors digested uneven readings on the U.S. economy and on oil prices that remained near records.

Oil prices fell Friday on profit-taking, a day after surging to record highs on the back of a weak dollar and concerns over tight supplies, traders said.

Oil prices shot to a record above $144 a barrel Wednesday as the government reported a bigger-than-expected drop in U.S. supplies and the threat of conflict with Iran weighed on traders' minds.

MANILA, Philippines -- With world oil prices shooting up to record levels of more than $140 a barrel, the Arroyo administration must now come up with a “battle plan” to address this “assault” against the Filipinos’ purchasing power and livelihood.

July 5 (Bloomberg) -- Asian stocks fell for a fourth week, on concern record crude oil prices will slow global economic growth and erode earnings. Japan's Nikkei 225 Stock Average posted its longest losing streak in 54 years.

SAPPORO, Japan — Between surging oil prices, food inflation and a credit crunch that's depressed global growth, leaders from the Group of Eight economic powers face the gravest combination of economic woes in at least a decade when they gather next week.

By Mella McEwen Oil Editor Having called the heads of the five largest publicly traded oil companies to testify about high oil and gasoline prices, Congress has turned its attention to oil futures traders, certain speculation is fueling high energy prices.

HONG KONG, CHINA: Asian markets were mixed Friday (4 July) as investors digested uneven readings on the U.S. economy and oil prices that remained near records. Japan posted its 12th straight day of losses, while major indices in Europe fell in early trade.

Oil prices fell more than US$1 a barrel Friday from record levels set a day earlier on hopes that tensions surrounding Iran's nuclear program could ease and cut the chances of American or Israeli military action against OPEC's second-largest oil producer.