Oil Prices Rise Amid Tensions

By Florence Tan

SINGAPORE (Reuters) – Oil prices extended gains 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 by 2229 GMT after settling up 0.95% in the previous session.

Brent crude, which will roll to the January contract, has yet to start trading. The December contract, which expired on Thursday, closed 0.85% higher at $73.17.

Israeli intelligence suggests Iran is preparing to attack Israel from Iraqi territory in the coming days, possibly before the U.S. presidential election on Nov. 5, Axios reported on 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, the Axios report added. This could be an attempt by Tehran to avoid another Israeli attack against strategic targets in Iran.

Oil prices were also supported by expectations that OPEC+ might delay December's planned increase in oil production by a month or more due to concerns about soft oil demand and rising supply, according to four sources close to the matter cited by Reuters on Wednesday.