Oil prices rose in early Asian trade on Friday, following reports that Iran was preparing a retaliatory strike on Israel from Iraqi territory in the coming days.
U.S. West Texas Intermediate crude futures rose $1.24, or 1.8%, to $70.50 a barrel at 2229 GMT, after rising 0.95% during the session previous.
Brent, which will move to the January contract, has not yet started trading. The December contract, which expired on Thursday, closed up 0.85% at $73.17.
Israeli intelligence suggests that Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the Nov. 5 U.S. presidential election, Axios reported Thursday, citing two unidentified Israeli sources.
The attack is expected to be carried out from Iraq using a large number of drones and ballistic missiles, Axios adds. The report said carrying out the attack through pro-Iranian militias in Iraq could be an attempt by Tehran to avoid another Israeli attack on strategic targets in Iran.
Oil prices were also supported by expectations that OPEC+ could delay a planned increase in oil production in December by a month or more, four sources familiar with the matter told Reuters on Wednesday, citing the concerns about weak oil demand and increasing supply.
