Oil edged higher on Friday, following an earlier price spike of more than $3 a barrel, after Iran played down a reported Israeli attack on its soil, a sign that an escalation of hostilities in the Middle East might be avoided.
Brent futures were up 59 cents, or 0.68 per cent, at $87.70 a barrel at 1:45 p.m. EDT (1745 GMT).
The front month US West Texas Intermediate (WTI) crude contract for May rose 84 cents, or 1.02 per cent, to $83.57 a barrel. The more active June contract was up 57 cents, or 0.69 per cent, at $82.67 a barrel.
