Oil prices continue to strengthen on concerns over Iran-Israel escalation as a 'major oil producer'

International oil prices continue to strengthen on concerns that the war between Iran and Israel could escalate.

West Texas Intermediate for November delivery closed at $70.10 a barrel, up 0.39% from the previous session.

Brent crude prices for December delivery also rose 0.46% from the previous session to $73.90 a barrel.

Iran, a major oil producer and regional power, produced an average of 3.3 million barrels of crude oil per day last month and exports are around 1.7 million barrels per day, which could adversely affect oil supply if it participates in the war directly.

However, after the U.S. Energy Information Administration announced that U.S. commercial crude oil inventories surged by 3.89 million barrels to 407 million barrels in the week to the 27th of last month, supply instability has eased.

In addition, the Organization of Petroleum Exporting Countries Plus, a group of oil-producing countries, decided to increase production by 180,000 barrels per day for a year starting in December, maintaining its year-end production plan.