* Brent eyes 1.8 pct weekly gain, WTI 1.5 pct rise
* Iran supply reductions loom
* Global economic risks mounting - IEA
* Coming Up: Baker Hughes' US oil rig count at 1 p.m. (1700 GMT) (Updates prices, adds comment, changes dateline; previous LONDON)
NEW YORK, Sept 14 (Reuters) - Oil prices were largely steady on Friday after the previous session's steep drop due to demand concerns, but were on track to end the week higher bolstered by earlier gains on supply constraints from Iran following U.S. sanctions.
Brent crude fell 23 cents to trade at $77.95 a barrel at 11:17 a.m. EDT (1517 GMT). The global benchmark fell 2 percent on Thursday after rising on Wednesday to its highest since May 22 at $80.13.
U.S. West Texas Intermediate (WTI) futures were up 11 cents at $68.70 a barrel after dropping 2.5 percent on Thursday.
After a volatile week, Brent was set for a 1.4 percent weekly rise and WTI 1.3 percent.
Prices are holding at a lower level under pressure from high U.S. East Coast gasoline stockpiles and a sense that there will be considerable demand destruction from Hurricane Florence, which made landfall on Friday, said John Kilduff, a partner at Again Capital in New York.
Cutbacks from Iran's production following the imposition of U.S. sanctions did not provide an immediate enough catalyst for to support prices, he said.
Capped by demand concerns, prices are unlikely to rally above $80 a barrel for Brent, he said.
"The price action of yesterday confirms $80.00 a barrel as a strong resistance line in Brent," consultancy Petromatrix said in a research note.
"There has been a lot of speculative interest searching for Brent above $80.00 a barrel on the back of the U.S. sanctions on buyers of Iranian crude oil, but so far this year any buying of Brent above $79.00 barrel did not have a long shelf life."
Price rises were capped after U.S. Energy Secretary Rick Perry said Saudi Arabia, other members of OPEC and Russia were to be admired for trying to prevent a spike in global oil prices.
Meanwhile, the International Energy Agency on Thursday warned that although the oil market was tightening and world oil demand would reach 100 million bpd in the next three months, global economic risks were also mounting.
China will not buckle to U.S. demands in any trade negotiations, the major state-run China Daily newspaper said, while U.S. President Trump said on Twitter he felt no pressure to strike a deal with China.
Following Chinese President Xi Jinping's call for a boost to national energy security amid trade tensions, the country's crude oil output rose in August for the first time in nearly three years.
The United States is renewing sanctions on Iran after withdrawing from a nuclear deal forged in 2015 between Tehran and world powers.
Washington reimposed some of the financial sanctions from Aug. 6, while those affecting Iran's petroleum sector will come into force from Nov. 4.
Indian refiners, traditionally major buyers of Iranian crude, will cut their monthly loadings from Iran for September and October by nearly half from earlier this year.
But Iran's OPEC governor Hossein Kazempour Ardebili, said in comments to Reuters that a "supply shortage" meant that the United States would not be able to meet its zero export target.
(Additional eporting by Aaron Sheldrick in Tokyo and Shadia Nasralla in London; Editing by Matthew Mpoke Bigg)