Oil prices moved higher in late Friday trading as investors balanced renewed geopolitical risk in the Middle East against signs of tighter supply in the United States. Brent crude edged toward $78 a barrel, reflecting continued sensitivity in energy markets to conflict-related disruptions.

Traders also responded to fresh inventory data that suggested U.S. crude stockpiles are not as abundant as previously expected. Smaller inventories can support prices by signaling stronger demand or reduced supply, adding another layer of pressure to an already cautious market.

The latest gains highlight how quickly crude can react to developments far beyond the oil sector itself. Even when supply fundamentals are the main driver, regional instability can amplify volatility and keep buyers focused on the possibility of disruptions to shipping, production, or exports.

For consumers and businesses, the move is another reminder that energy costs remain exposed to both market data and political risk. Analysts say price direction in the near term will likely depend on whether supply concerns continue to outweigh broader demand uncertainty.