Global oil prices edged higher on Friday, partly due to a three-day holiday in the United States. Earlier in the week, prices had dipped slightly after concerns of a potential U.S. strike on Iran eased. However, ahead of the Martin Luther King Jr. holiday, oil buying activity increased, pushing prices upward again.

According to Reuters, the U.S. holiday prompted traders to secure supplies to avoid potential shortfalls, contributing to the modest price rise. Still, analysts note that the possibility of a U.S. military action in Iran has not been completely ruled out.

Brent crude, the international benchmark, rose by 37 cents to $64.13 per barrel, while West Texas Intermediate (WTI) increased to $59.44 per barrel, marking a 0.42 percent gain.

Concerns over supply were also influenced by the movement of the U.S. Navy’s aircraft carrier, USS Abraham Lincoln, which was expected to reach the Persian Gulf after completing duties in the South China Sea. At the same time, potential increases in Venezuelan oil exports could ease supply tensions, according to Phil Flynn, senior analyst at Price Futures Group. He explained that Venezuelan shipments have yet to begin as expected, and traders were eager to avoid shortages during the three-day U.S. holiday.

Last week, oil prices surged due to fears of a U.S. strike on Iran following protests in the country. Prices hit multi-month highs before dropping more than 4 percent on Thursday, after former President Trump noted a reduction in Iranian crackdowns on protesters, easing concerns over potential disruptions to oil supply.

Analysts at Commerzbank noted that the key risk remains that tensions could escalate and Iran might block the Strait of Hormuz, through which nearly a quarter of global oil passes.

Looking ahead, experts suggest that geopolitical tensions may gradually ease, shifting attention back to Venezuela, where sanctions and export delays have previously limited supply. As these supplies return to the market, global oil availability is expected to increase, potentially balancing prices despite geopolitical uncertainties.

Priyanka Sachdeva, an analyst at Phillip Nova, said that despite ongoing concerns over geopolitics and the global economy, fundamental supply-demand balance remains sufficient for now. She expects Brent crude to fluctuate within a range of $57 to $67 per barrel, assuming no sudden spike in Chinese demand or major supply disruptions.

For context, oil prices peaked at $139 per barrel following the Russia-Ukraine conflict in 2022 but have gradually declined since, due largely to slower global economic growth, including in China. Even recent geopolitical tensions have had a limited impact on market prices.