Brent crude futures were up 0.7%, at $78.17 a barrel, as of 10:31 CAT. United States West Texas Intermediate crude futures were up 0.7%, at $74.21 a barrel.

Both benchmarks were headed for weekly gains of about 9%.

"While Iran has 'saved face' by its rocket attack on Israel on Tuesday, fears are growing that Israel might target Iranian oil infrastructure under its response, which could provoke further retaliation dragging neighbouring states into the conflict," Panmure Gordon Analyst Ashley Kelty said.

The US is discussing whether it would support Israeli strikes on Iran's oil facilities as retaliation for Tehran's missile attack on Israel, President Joe Biden said on Thursday, while Israel's military hit Beirut with new airstrikes in its battle against Lebanese armed group Hezbollah.

--Reuters--