Iran prepares strike on Israel from Iraq, Axios reports
Investors also focused on US election and China39;s NPC meeting next week

LONDON, Nov 1 Reuters Oil prices rose more than 2 on Friday after reports that Iran was preparing a retaliatory strike on Israel from Iraq in the coming days, though benchmarks were still set for a weekly decline.

Brent crude futures were up 1.72, or 2.4, at 74.53 a barrel by 1024 GMT. U.S. West Texas Intermediate crude rose 1.76, or 2.5, to 71.02.

U.S. news website Axios reported on Thursday that Israeli intelligence suggests that Iran is preparing to attack Israel from Iraq within days, citing two unidentified Israeli sources.

Any additional responses from Iran might remain restrained, similar to Israel39;s limited strike last weekend, hence primarily intended as a demonstration of strength rather than an invitation to open warfare, said SEB Research analyst Ole Hvalbye.

The two countries have engaged in a series of titfortat strikes within the broader Middle East warfare set off by fighting in Gaza. Previous Iranian air attacks on Israel on Oct. 1 and in April were mostly repelled, with only minor damage.

Brent is on track to finish the week down almost 2, having tumbled 6 on Monday after Israel39;s Oct. 26 strike against Iran bypassed oil and nuclear facilities.

Oil prices were also supported by expectations that OPEC could delay December39;s planned increase to oil production by a month or more on concern over soft oil demand and…