Oil prices closed the week with gains, driven by encouraging economic data.

A trio of Federal Reserve policymakers indicated on Thursday that they are increasingly confident inflation is cooling enough to warrant cutting interest rates.

Oil prices rose on Friday, closing the week with a gain of more than 3.5%, as encouraging economic data and signs that the Federal Reserve (Fed) might cut interest rates in September eased concerns about demand.

Fears of escalating conflict in the Middle East continued to heighten supply risks.

Brent crude futures climbed 50 cents, or 0.6%, to $79.66 per barrel, while U.S. West Texas Intermediate (WTI) futures gained 65 cents, or 0.9%, to $76.84 per barrel.

For the week, Brent rose more than 3.5%, while WTI surged over 4%.

Oil is in recovery mode, with geopolitical tensions acting as a supportive factor and recession fears easing somewhat, at least for now.

A larger-than-expected drop in U.S. jobless claims data also helped bolster the recovery.

Additionally, China’s consumer price index (CPI) showed a slightly higher-than-expected increase last month, according to statistics from the Chinese government. The positive momentum was further strengthened by these inflation figures exceeding expectations. In this context, it wouldn’t be surprising to see oil prices testing the $80 per barrel level.