09:03 AM EDT, 08/09/2024 (MT Newswires) -- Oil prices strengthened for a fourth-straight day early on Friday, buoyed by geopolitical tensions and the possibility of a revival in Chinese demand after the country reported higher-than-expected inflation in July.

West Texas Intermediate crude oil for September delivery was last seen up US$0.27 to US$76.46 per barrel, while October Brent crude, the global benchmark, was up US$0.23 to US$79.39.

The rise comes as geopolitical tensions remain taut while Israel awaits Iran's response to last week's assassination of a senior official in the Hamas militant group in Tehran. Iran's senior leader vowed to retaliate against Israel for the deadly airstrike, threatening a wider Middle Eastern war that could imperil Persian Gulf oil supplies.

"As the sentiment-driven crude sell-off eases, traders have turned their attention back to supply risks, not least the Middle East," Saxo Bank noted.

A higher-than-expected rise in China's inflation in July is also supporting prices, on hopes the economy of the No.1 importer is rising from the doldrums of a real-estate debt crisis, even though the increase is being attributed to higher pork prices.

"CPI year-on-year for July was 0.5% and so was the month-on-month which beat the 0.3% forecasts for both. There was also a better reading in PPI which shrank by -0.8% rather than -0.9%, which is derisory as a driver but with China any port in a storm will do when looking for something not bearish," PVM Oil Associates noted.