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STORY: Oil prices rose on Thursday (October 3) as markets worried about a potential a widening conflict in the Middle East.

They fear further tensions could disrupt crude oil flows from the key exporting region.

Both Brent and U.S. West Texas Intermediate crude benchmarks were up more than $1, or over 1%.

Israel bombed central Beirut early Thursday, killing at least six people.

Its forces also saw their deadliest day on the Lebanese front in a year of clashes against Iran-backed armed group Hezbollah.

The strike on Beirut happened a day after Iran fired more than 180 ballistic missiles at Israel in an escalation of hostilities.

One leading analyst warned investors will look out for any upcoming Israeli response.

They added the question for oil now is whether Iran's energy infrastructure will be in Israel's sights.

The Middle East tensions overshadowed a stronger global supply outlook.

U.S. officials said crude inventories rose by 3.9 million barrels to 417 million barrels in the week ended September 27 - well above forecasts.

One analyst said growing U.S. inventories added to evidence the market is well supplied and can withstand any disruptions.