09:07 AM EDT, 10/03/2024 (MT Newswires) -- Oil prices rose early on Thursday, climbing for a third-straight day on concerns over a potential attack on Iran's oil industry following its Tuesday missile attack on Israel.

West Texas Intermediate crude oil for November delivery was last seen up US$1.47 to US$71.57 per barrel, while December Brent crude, the global benchmark, was up US$1.40 to US$75.30.

Both Israel and the United States said the plan to retaliate after Iran attacked Israel with 180 missiles. Most were shot down by air defenses and damage to Israeli homes and infrastructure was limited. No timing for any retaliation has been offered by Israel or the United States, though Israel is in the midst of Rosh Hashanah new year celebrations.

Iran exports 1.7-million barrels of oil per day, well below its capacity due to sanctions, but concerns over heightened violence in the oil-rich Persian Gulf region is adding a risk premium to a market that had been focused on weak demand from China amid rising supply.

"The geopolitical risks in the Middle East will continue to underpin oil prices in the short-term," Saxo Bank noted.

Countering the geopolitical worries are weak Chinese demand as its economy struggles. As well, U.S. inventories are on the rise. A Wednesday report from the Energy Information Administration showed oil stocks there rose by 3.9-million barrels last week, while most analysts expected a drop.

A return of Libyan supply is also offering a check to prices. Bloomberg reported the country will resume full oil output today, after a now-settled dispute between competing national governments cut exports to around 450,000 barrels per day from 1.2-million bpd.

As well, OPEC+ on Wednesday confirmed it will begin unwinding 2.2-million bpd of voluntary production cuts in December, adding 180,000 bpd of supply the market monthly for a year.