Oil prices saw a slight increase on Friday as the market focused on ongoing talks between the U.S. and Iran in Oman, while also assessing the potential risk of a Middle East conflict that could disrupt oil supplies.

Brent, the global benchmark for crude, settled 0.74 per cent higher at $68.05 a barrel, while West Texas Intermediate, which tracks US crude, rose 0.41 per cent to $63.55 a barrel, The Caspian Post reports, citing foreign media.

Negotiations between representatives of Washington and Tehran, mediated by Oman, took place on Friday. Officials indicated further talks would be needed, which kept investors jittery about geopolitical risks.

“Geopolitics remains the dominant driver. Oil prices rose ahead of planned US - Iran talks in Oman after Iranian media signalled there would be no quick resolution. Discussions are expected to focus on broad issues rather than technical details,” Vijay Valecha, chief investment officer at Century Financial, said.

“That has kept short-term supply risks elevated, even as markets continue to debate the likelihood of a diplomatic breakthrough.”