U.S. stock futures rose and Treasury yields slipped slightly in European afternoon trade, though they hovered near multiyear highs as investors remained on edge ahead of crucial inflation data later Friday.

Oil prices pulled back after closing above $107 a barrel Thursday, after the International Energy Agency further cut its forecast for oil demand. Prices remained elevated as investors brace for the indefinite closure of the Strait of Hormuz. Increasing activity by Iran-backed Houthi rebels in Yemen adds another threat to energy infrastructure in the region. Brent crude oil was last 3.35% lower at $104.02.

U.S. government bond yields remained near multiyear highs. Yields on 10-year Treasurys traded around 4.950%, threatening to cross the 5% threshold for the second time since the financial crisis. Two-year yields remained close to multiyear highs at 4.579%. Yields on 30-year bonds traded at highs not seen since 2004, as the Treasury's expanded buyback program struggled to support the long end.

Friday's consumer price index for August will be crucial in shaping market expectations for the Federal Reserve's policy meeting next week. The data won't reflect the recent increase in energy prices, but a hot print will likely pile pressure on the Fed to act.

"If the Fed bypasses this month's meeting without announcing a rate hike, questions about the Fed's independence and the White House influence would return," potentially driving longer-dated yields higher still, Swissquote's Ipek Ozkardeskaya said.

Higher yields have weighed on broader market sentiment this week. U.S. stock futures were in the green, however, putting major indexes on track to break a four-day losing streak. Futures for the Dow Jones Industrial Average and the S&P 500 both rose 0.5%. Nasdaq futures extended gains to rise 0.6%.

Oracle shares jumped close to 6% premarket after the software and cloud-computing company posted a 60% surge in profits for its fiscal first quarter.

Elsewhere, Asian stocks endured a sharp fall following losses during Thursday's U.S. session. Japan's Nikkei dropped 1.9%, while Korea's chip maker-dominated Kospi lost 1.8%. Hong Kong's Hang Seng fell 0.65%.

European stocks broadly strengthened, however, after wiping out two months of gains in rocky trade so far this week. The Europe-wide Stoxx 600 rose 0.6%, driven by banks and industrials.

The dollar gained ahead of Friday's inflation print, while sterling strengthened slightly after stronger-than-expected U.K. economic growth data. Bitcoin rose 0.55% to $76,959.15, while New York gold futures fell back below $4,400 a troy ounce.