U.S. crude price gained Friday after news of the United States launching "targeted" airstrikes in northern Iraq raised concerns about growing instability in the second largest crude producer in the Organization of the Petroleum Exporting Countries (OPEC).

The Pentagon said Friday that U.S. aircraft bombed Islamic State artillery attacking Kurdish forces near Arbil, Iraq, one day after U.S. President Barack Obama's decision to authorize air raids and airdrops of aid to protect the besieged minority and U.S. personnel in Iraq.

In the longer term, some analysts said, the U.S. military involvement would be good for the oil supply as the Kurds are able to retake oil fields from the militants.

In Russia, another important oil producer, tensions have shown signs of easing after Moscow said it ended military drills near its border with Ukraine.

As most of Russian crude and gas exports to Europe pass through Ukraine, the lingering geopolitical concerns in Ukraine pushed the crude prices up on Thursday when Russia imposed a ban on food imports from the European Union and the United States in retaliation for their sanctions against Moscow over its role in the Ukraine crisis.

Light, sweet crude for September delivery moved up 31 cents to settle at 97.65 U.S. dollars a barrel on the New York Mercantile Exchange, while Brent crude for September delivery lost 42 cents to close at 105.02 dollars a barrel. Endite

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