Crude oil slipped to around $71.2 per barrel on Friday but remained on track for a weekly gain of about 3.5% as renewed US-Iran tensions disrupted shipping through the Strait of Hormuz and raised supply concerns.
Markets continued to monitor developments after fresh attacks strained the ceasefire, although talks between Washington and Tehran are expected to continue.
President Donald Trump said the two sides had agreed to keep negotiations open but warned that the ceasefire was effectively over following renewed hostilities.
Earlier reports indicated technical discussions could resume, with a Qatari delegation arriving in Iran as part of diplomatic efforts.
The IEA cautioned that a prolonged escalation could undermine plans to rebuild global oil inventories later this year.
Meanwhile, the United Arab Emirates increased crude production to a record high last month, highlighting efforts by Gulf producers to maintain exports despite ongoing uncertainty.