Oil prices rallied to a weekly gain of around 4% as demand concerns eased on positive economic data and signals from Federal Reserve policymakers that they may be nearing the end of interest rate hikes, possibly as soon as September. Meanwhile, fears of a widening Middle East conflict continue to stoke supply risks.

Brent crude futures settled up 50 cents at $79.66 a barrel. U.S. West Texas Intermediate (WTI) crude futures also rose, gaining 65 cents to settle at $76.84.

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

Three Fed policymakers signaled they are becoming more confident inflation is receding enough to allow for a pause in rate increases.

Meanwhile, data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week, pointing to a labor market that remains tight. This, in turn, eased recessionary fears.

Prices were also supported by China’s consumer price index (CPI). Data from the National Bureau of Statistics showed that the CPI rose slightly faster than expected last month.

At the same time, the dollar index, which measures the currency against six peers, eased 0.136% to 103.14 after three days of gains. A weaker dollar makes crude cheaper for foreign buyers, boosting demand. Also supporting prices, Libya’s National Oil Corporation (NOC) declared a force majeure on its Sharara oilfield starting last Wednesday, saying production had been gradually reduced due to protests.