Oil prices railed on Friday, posting a weekly gain over 3.5%. This gain was driven by positive economic data and indications from Fed that interest rate cuts will likely occur as soon as September, alleviating concerns about demand. However, ongoing worries of an escalating Middle East conflict continue to heighten supply risks.

Brent crude added 0.6%, at $79.66 per barrel, while US WTI futures advanced by 65 0.9% to $76.84 pe

Brent saw a weekly increase of over 3.5%, while WTI surged by more than 4%."

On Thursday, three Federal Reserve officials signaled greater assurance that inflation is easing enough to justify a rate cut. Furthermore, a larger-than-expected decline in U.S. jobless claims contributed to bolstering the economic recovery.

Last week, new unemployment benefit applications in the U.S. dropped more than anticipated, indicating that concerns about a deteriorating labor market may have been overstated and that the gradual easing of labor market conditions is still on track.

Support was also provided by China's consumer price index, which increased at a slightly higher rate than anticipated last month, according to data from the statistics bureau.