Oil prices moved higher on Friday after signs emerged that tensions between Iran and Israel may be cooling. Brent crude climbed 1.2% to $82.45 a barrel, while U.S. West Texas Intermediate rose 0.9% to $78.90.

The gains came as traders reassessed the risk of supply disruption in the Middle East, a region that remains central to global energy markets. When the threat of escalation eases, crude often loses part of its conflict premium; when fears intensify, prices typically move in the opposite direction.

Reuters reported that the latest move reflected a more cautious market mood rather than a fundamental shift in supply and demand. Investors are still watching for any sign that regional tensions could flare again and unsettle shipping routes or production.

For now, the market appears to be pricing in a modest reduction in geopolitical risk, even as broader uncertainty around the region continues to hang over energy trading.