Oil prices rose on Friday, but Brent crude remained on track for a weekly loss of nearly 8% amid continued market volatility.

Brent crude futures to $80.38 a barrel, while US West Texas Intermediate (WTI) crude rose 1.2% to $77.54 a barrel.

Despite this partial recovery, both benchmarks remain on track to close the week with losses exceeding 8%. The main reason behind the decline was a shift in investors' perception of geopolitical risk," explained Antonio Di Giacomo, the Senior Market Analyst at XS.com, a multinational fintech and financial services provider.

"Reports of a potential ceasefire agreement between Israel and Hezbollah significantly reduced concerns about a regional escalation that could disrupt energy production or transportation in the Middle East. The easing of tensions triggered a rapid unwinding of speculative positions that had supported prices in recent weeks," he added.

The oil prices rose in a choppy trading session, as cracks started to emerge in the preliminary deal between the US and Iran to end the war, reported The New York Times.

Talks between officials representing the countries were postponed, with Vice President JD Vance delaying a scheduled trip to Switzerland for the next phase of negotiations amid Israel launching new strikes in Lebanon, highlighting the fragility of the agreement signed this week. 

With the status of conditions in Strait of Hormuz unclear, shipping companies weighed whether it was safe to transit the waterway, a crucial passageway for oil and gas in the Gulf region.

Oil prices remain on track to fall for a second straight week, though, as traders react to apparent diplomatic breakthroughs, however tenuous, in recent days, stated the NY Times report.

The price of Brent crude, the global benchmark for oil, fluctuated throughout Friday before gaining momentum near the end of the trading day and rising nearly 1% above $80 per barrel. It remains more than 10% higher from the first days of the US-Israeli strikes in late February.