Oil prices rose today following reports of a potential Iranian attack on occupied Palestinian territories.

Oil prices rose during trading on Friday following reports from the occupying government indicating that Iran may be preparing to attack the occupied territories from Iraq in the coming days, raising market concerns about a potential new escalation in the Middle East.

In trading, Brent crude prices increased by about 2.1% to trade at $74.10 per barrel, while West Texas Intermediate crude prices rose by 1.86% to record $70.66 per barrel, with both crude types heading towards weekly gains exceeding 3.5% so far.

This comes after Axios reported, citing Israeli sources, that Iran plans to launch an attack using militias supported by the Persian state in Iraq, stating that it is expected to be carried out using drones and ballistic missiles, according to the report.

Oil prices had declined at the beginning of the week following Israel's limited attack on Iran in retaliation on October 1, leading to a rapid decline in the risk premium on oil and a shift in focus towards weak demand forecasts.

However, the possibility of renewed escalation in the region has heightened investor fears of a resurgence in conflict in the Middle East, especially following the Israeli invasion of Lebanese territories in recent months, and the potential impacts of this on oil supplies from the area.

This comes at a time when the oil market is awaiting several key data and events that may significantly impact prices, ranging from the U.S. elections to the meeting of China’s highest legislative body scheduled for next week, along with upcoming production adjustment decisions in December.

Meanwhile, manufacturing activity in China rebounded more than expected in October despite the Golden Week holiday, with the positive reading indicating stability after Beijing announced recent economic stimulus measures to support the economy.