Oil prices edged higher on Friday as optimism over easing tensions in the Middle East supported market sentiment, though gains remained limited as recovering crude supplies from key Gulf producers offset concerns over potential disruptions.
Brent crude rose 17 cents, or 0.24%, to $72.10 a barrel, while US West Texas Intermediate (WTI) crude gained 14 cents, or 0.20%, to $68.83 a barrel in early trading.
Despite Friday’s uptick, both benchmarks remained near their lowest levels since before the recent US-Israel conflict involving Iran. For the week, Brent slipped 0.02%, while WTI was up 0.12%, marking their smallest weekly changes in months.
Market participants said investors are cautiously assessing whether diplomatic efforts between the United States and Iran can deliver lasting regional stability, even as uncertainty persists over the durability of any peace agreement.
Read More: Oil prices fall for third straight day as Iran-U.S. talks show progress
Meanwhile, oil supplies are gradually recovering as shipping activity through the Strait of Hormuz returns to normal following the easing of regional tensions.
The strategic waterway handles nearly one-fifth of global oil and liquefied natural gas shipments, making its uninterrupted operation critical to global energy markets.
Adding to supply expectations, Kuwait increased crude production to 1.65 million barrels per day in June from 580,000 bpd in May after ramping up exports following the interim US-Iran peace agreement.
At the same time, at least five Saudi supertankers carrying a combined 10 million barrels of crude have transited the Strait of Hormuz.
Saudi Aramco has also shifted to spot pricing to accelerate crude sales to Asian buyers, according to trade and shipping sources.
This version follows a clean Reuters/Bloomberg-style structure with the most important information first, followed by prices, market context, analyst perspective, and supply developments.
