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Crude oil prices moved higher on Friday amid rising tensions in the Middle East after the U.S. Navy shot down an Iranian drone in the Strait of Hormuz.

Oil's uptick was also supported by news that the Iranian Revolutionary Guard has seized a U.K.-flagged oil tanker in the Gulf of Oman.

West Texas Intermediate Crude oil futures for August ended up $0.33, or about 0.6%, at $55.63 a barrel.

On Thursday, WTI crude oil futures for August ended down $1.48, or about 2.6%, at $55.30 a barrel.

For the week, crude oil futures lost more than 7%, weighed down by concerns about outlook for energy demand due to global slowdown.

U.S. President Donald Trump told reporters the USS Boxer took defensive action after the Iranian drone moved close to within 1,000 yards of the amphibious assault ship and ignored multiple calls to stand down.

Oil prices were also supported by comments from a top Federal Reserve official that suggested the central bank will cut rates aggressively to support the economy amid the ongoing U.S.-China trade war.

Meanwhile, the International Energy Agency has reduced its 2019 oil demand forecast to 1.1 million barrels per day (bpd). IEA's executive director said on Thursday that the demand forecast may be lowered again if the global economy and especially China shows further weakness.