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Oil prices were largely steady on Friday after posting sharp losses in the previous session, as hopes for a near-term resolution to the U.S.-Israeli conflict with Iran weakened following Hezbollah's rejection of a new ceasefire proposal in Lebanon.Crude oil price on June 5Brent crude futures slipped 21 cents, or 0.22%, to $95.24 a barrel, after settling 2.84% lower on Thursday. U.S. West Texas Intermediate (WTI) crude eased 10 cents, or 0.11%, to $92.94 a barrel, following a 3.1% decline in the previous session.Despite the pullback, both benchmarks remain on track to register their first weekly gain in three weeks. WTI has advanced more than 6% this week as tensions in the Middle East intensified, U.S.-Iran peace negotiations continued without a breakthrough, and shipping through the Strait of Hormuz, which handles roughly a fifth of global oil flows, remained constrained.On Thursday, Hezbollah leader Naim Qassem rejected a U.S.-brokered agreement between Israel and the Lebanese government aimed at ending the conflict. Iran has linked any peace agreement with Washington to a ceasefire in Lebanon. U.S. President Donald Trump said on Thursday that he believed progress was being made between Israel and Lebanon and added that Lebanon deserved peace.Meanwhile, OPEC continues to maintain its forecast for oil demand growth of 1.2 million barrels per day this year. Secretary General Haitham Al Ghais reiterated the outlook on Thursday despite the ongoing Middle East conflict and the closure of the Strait of Hormuz.Where are prices headed?According to a Reuters report, Haitong Futures said crude prices could move toward the upper end of their trading range as tightening supply-demand conditions coincide with rapidly shrinking global oil inventories.Analysts also noted that even if a ceasefire is reached, shipping activity through the Strait of Hormuz may take months to return to normal. Any damage to energy infrastructure, they added, could further delay the recovery.Last month, Saudi Aramco Chief Executive Officer Amin Nasser warned that disruptions in the Strait of Hormuz could delay stability in global oil markets until 2027. He said prolonged disruptions could impact nearly 100 million barrels of oil supply every week. Saudi Aramco remains the world's largest oil producer.Morgan Stanley described the oil market as being in a race against time, cautioning that factors that have so far prevented a sharper rise in crude prices may begin to weaken if the Strait of Hormuz remains shut through June.The brokerage noted that stronger U.S. crude exports and softer demand from China have helped absorb part of the supply shock. However, it warned that a prolonged disruption to the key shipping route could once again tighten global supplies if the closure extends beyond the period during which the U.S. and China can offset the impact.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)