If the wood is dry, it's probably dry deep into the wood. I'm a big fan of linseed oil, but by itself, it won't penetrate as deeply, and you want to feed that dry wood as deeply as you can. Making a 50/50 solution of linseed oil and turpentine will thin the linseed and take it more deeply into the wood. A lot of cracks will simply disappear in this process. I put on a lot of this mixture, and as it soaks into the wood, I put on more. And then, usually, still more, until the linseed is as deep as it is going to get. Last, a coat or two of pure linseed.
If you really like blisters, then varnish the thing. Old timers never varnished the handles of their tools, in part for this reason, and in part because the varnish wears off anyway. You will get a nice shine with just the linseed oil, and if it wears a bit, it can be rejuvenated with some more linseed oil.
The Galoot formula uses thinner to get penetration, and penetration is the name of the game.