Oil prices moved higher on Friday as traders weighed renewed Middle East tensions alongside fresh signs on supply. Brent crude futures rose 0.4% to $78.60 a barrel, while U.S. West Texas Intermediate climbed 0.5% to $74.80.

Market participants remained focused on whether regional instability could disrupt shipments or tighten flows through key energy routes. At the same time, recent inventory data added to the debate over whether supply is keeping pace with demand.

The latest gains were modest, suggesting traders are still waiting for clearer signals before making bigger bets. For now, crude markets remain highly sensitive to geopolitical developments, production shifts, and changes in stockpiles.

Oil’s direction in the near term is likely to hinge on whether tensions ease or intensify, and on whether upcoming data confirms a looser or tighter supply picture.