India, May 9 -- World shares retreated, and oil prices fell back on Friday as the fragile ceasefire with Iran was strained by missile and drone attacks that prompted US retaliatory strikes on Iranian military facilities.

US futures rose despite the latest flare-up in the conflict. The future for the S&P 500 gained 0.5 per cent, while that for the Dow Jones Industrial Average was up 0.3 per cent.

Investors are closely watching the war situation as negotiations between the US and Iran to end the war make limited progress. Tehran said on Thursday that it was still examining the latest proposals from the US for ending the war.

In early European trading, Britain's FTSE 100 fell 0.7 per cent to 10,206.38. Germany's DAX shed 1 per cent to 24,...