Oil prices settled modestly higher on Friday as traders covered short positions ahead of the three-day Martin Luther King Jr. holiday weekend in the U.S., while lingering concerns over a possible U.S. military strike against Iran continued to support prices. Brent crude rose 37 cents, or 0.6%, to settle at $64.13 a barrel, while U.S. West Texas Intermediate gained 25 cents, or 0.4%, to finish at $59.44.
Most of the day’s strength appeared to reflect precautionary buying ahead of the long weekend, with investors wary of holding short positions amid ongoing geopolitical uncertainty. While fears of immediate escalation eased somewhat, attention remained on U.S. military movements in the region and the risk that tensions with Iran could disrupt oil flows, particularly through the Strait of Hormuz.
Those concerns were partly offset by expectations that additional supply could emerge from Venezuela, though analysts noted that the increase has so far fallen short of earlier expectations. Prices had reached multi-month highs earlier in the week amid unrest in Iran, before sliding more than 4% on Thursday after signs that Tehran’s crackdown on protesters was easing.
Looking ahead, analysts said ample global supply is likely to cap further gains. While geopolitical risks continue to inject volatility, expectations of higher output this year suggest oil prices may remain range-bound unless there is a significant escalation in Middle East tensions or a clear pickup in demand, particularly from China.