Oil Prices Edge Higher as Supply Risks Linger Despite Easing Iran Tensions

Oil prices inched higher on Friday, supported by lingering supply concerns, even as the immediate threat of a U.S. military strike against Iran appeared to recede.

Brent crude rose 50 cents, or 0.8%, to $64.26 a barrel by 10:00 GMT, putting it on track for a fourth consecutive weekly gain. U.S. West Texas Intermediate advanced 48 cents, or 0.8%, to $59.67.

Both benchmarks touched multi-month highs earlier in the week after protests intensified in Iran and U.S. President Donald Trump signalled the possibility of military action, sparking fears of disruptions from one of the world’s key oil-producing regions.

Those concerns eased late Thursday after Trump said Tehran’s crackdown on protesters was slowing, reducing the likelihood of near-term U.S. intervention and calming markets that had been pricing in a sharper geopolitical risk premium.

Still, traders remain wary. Iran’s strategic role in global energy flows means that even a modest escalation could have outsized effects on supply, keeping a layer of caution embedded in prices.

At the same time, analysts warn that expectations of higher global output later this year could cap further gains. Rising production from several major producers is likely to act as a ceiling on prices, limiting how far geopolitical tensions alone can drive the market.

As a result, crude remains caught between near-term risk premiums and longer-term supply headwinds, leaving prices firm but restrained.