Oil prices soar in the week on fears of US-Iran conflict

Oil futures rose about 1 percent on Friday, with US crude up 10 percent and global benchmark Brent gaining 5 percent in the week, on fears the United States could attack Iran and disrupt flows from the Middle East, which provides more than a fifth of the world's oil output.

US gasoline futures, meanwhile, jumped 4 percent following a massive fire at Philadelphia Energy Solutions' refinery in Philadelphia, the largest on the US East Coast.

"The heightening of tensions between the United States and Iran has evolved as primary price motivator in spiking oil values," Jim Ritterbusch of Ritterbusch and Associates said in a note.

While the rise in US-Iranian tensions has largely driven the crude price gains, analysts said an early July meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies to reassess production targets, a potential softening of trade tensions between the United States and China and the refinery fire were also supporting prices.

Brent futures rose 75 cents, or 1.2 percent, to settle at $65.20 a barrel, while the most active US West Texas Intermediate (WTI) crude contract ended the session up 36 cents, or 0.6 percent, at $57.43.

Brent notched a gain of about 5 percent for the week, its first weekly gain in five weeks, and WTI jumped about 10 percent, its biggest weekly percentage gain since December 2016.

The US benchmark surged 5.4 percent and Brent jumped 4.3 percent on Thursday after Iran shot down a drone that the United States claimed was in international airspace and Iran said was over its territory.

US President Donald Trump said he had aborted a military strike on Iran because such a response to Tehran's downing of the unmanned US surveillance drone would have caused a disproportionate loss of life.

Trump spoke on Friday to Saudi Crown Prince Mohammed bin Salman about Middle East stability and the oil market, the White House said, after tensions with Iran prompted a rise in oil prices.