Pakistan, July 3 -- Oil prices posted modest gains on Friday as investors remained cautiously optimistic about ongoing diplomatic efforts between the United States and Iran, while monitoring crude supplies from the Middle East ahead of the long US holiday weekend.

International benchmark Brent crude rose 17 cents, or 0.24%, to $72.10 per barrel, while US West Texas Intermediate (WTI) crude gained 14 cents, or 0.20%, to $68.83 per barrel in early trading.

US financial markets are closed on Friday in observance of the Independence Day holiday, resulting in relatively subdued trading activity.

Despite Friday's gains, both benchmarks recently touched their lowest levels since before the US-Israeli conflict involving Iran began in late Febr...