NEW YORK, Sept 25 (Reuters) - Oil prices fell about 1% on Friday as markets weighed the possibility of a truce between the US and Iran against concerns that increasing attacks against Saudi Arabia by Houthi fighters could disrupt supply from the Middle Eastern producer. 

Brent futures were down $1.14, or 1.1%, at $105.46 a barrel by 10:03 a.m. EDT (1403 GMT), while West Texas Intermediate (WTI) crude fell $1.05,  also 1.1%, to $93.56.

That put Brent up about 2% for the week and WTI down about 7%.

Gold prices edged higher on Friday, but remained on track for a weekly decline, dented by strength in the U.S. dollar and expectations for further Federal Reserve rate hikes aimed at corraling inflation. 

At 09:32 ET (13:32 GMT), spot gold had risen by 0.1% to $4,277.76 an ounce, while gold futures rose 0.3% to $4,312.67 an ounce.

The U.S. dollar index, which tracks the greenback against a basket of currency peers, had ticked down 0.3% to 100.96. Over the last one-week period, the index has climbed by 0.9%. A firmer dollar can weigh on gold by making it more expensive for overseas buyers.

Bitcoin pared some losses on Thursday to trade flat, as risk sentiment remained under pressure from a combination of spiking oil prices, soaring Treasury yields, and elevated Federal Reserve rate hike expectations. 

Broader cryptocurrency prices also pulled back from declines, and were largely sitting on weekly gains on the back of a rally on Monday.

Bitcoin was unchanged at $84,420.2 by 17:53 ET (21:53 GMT). The world’s largest crypto was still sitting on strong gains so far in September, as investors welcomed more regulatory favor from the U.S. government.