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As the market assesses supply risks, oil prices are rising.

The oil prices increased slightly on Friday, as participants in the market weighed supply risks. However, the likelihood of an?U.S. The likelihood of a U.S. strike against Iran has decreased.

Brent rose 5 cents or 0.1% to $63.81 per barrel, while U.S. West Texas Intermediate climbed 8 cents or?0.1% to $59.27 per barrel at 0749 GMT.

Brent and WTI both reached multi-month highs in this week, after protests erupted in Iran and U.S. president Donald Trump hinted at the possibility of strikes against the country. Brent prices are still on track for a fourth consecutive week of gains.

BMI analysts wrote in a client note that "given the potential political turmoil?in Iran", oil prices will likely experience greater volatility, as markets digest potential supply disruptions.

Trump stated late on Thursday that the crackdown by Iran on protesters is easing, reducing fears of military action which could disrupt oil supply.

In a note to clients, IG analysts stated that while (Iranian Supply) Risks have eased a bit, they are still significant and keep the?market anxious in the short-term.

They added that "any escalation with Iran would also raise concerns about a potential disruption of oil flows through Strait of Hormuz - a chokepoint at which around 20m barrels per day pass."

Analysts remain pessimistic about the prospect of a longer supply in this year, despite expectations from OPEC for a more balanced market.

"Sentiment drives markets, but headlines are always short-lived. Especially when fundamentals appear to be comfortable at the back of the line," Priyanka sahdeva, senior market analyst for Phillip Nova.

Oil looks range-bound with Brent hovering around $57 to $67.

OPEC announced on Wednesday that oil supply and demand will remain in balance in 2026. In 2027,?demand? will rise at a pace similar to the growth rate for?this?year.

Market participants expect near-term price changes to be influenced by geopolitical factors and macroeconomics.

The situation in Iran, and China's data dump, will likely drive the oil market in the short term, according to OANDA Senior Market Analyst Kelvin Wong. He added that WTI crude prices are expected to remain in a range of $55,75-$63.00 per barrel. Helen Clark, Trixie Yap and Tom Hogue edited this article.

(source: Reuters)