Oil futures jumped nearly 2% on Monday after OPEC+ announced it would delay unwinding production cuts by a month and traders digested a new report that said Iran is planning a "strong and complex" attack against Israel.

West Texas Intermediate (CL=F) futures rose to trade near $71 per barrel while Brent (BZ=F), the international benchmark, hovered below $75 per barrel.

The Organization of the Petroleum Exporting Countries along with Russia and other countries said it would continue with its output cuts for one month until the end of 2024.

The decision to delay adding 180,000 million barrels per day starting in December had already been postponed in recent months amid volatile oil prices.

"This delay could reflect a calculated strategy by OPEC+ to manage current market volatility, which includes a decline in global demand due to the economic slowdown in China," Rania Gule, senior market analyst at brokerage XS.com said in a note on Monday.

Prices also rose after a report from The Wall Street Journal stated oil-producer Iran is planning an attack against Israel involving powerful warheads.

Oil futures have been volatile over the past month amid back-and-forth strikes between Israel and Iran and speculation over whether Tel Aviv would target Tehran's oil facilities.

The markets bet against that possibility last Monday as oil dropped 6% in one session following Israel's measured strike against Iran in the early hours of October 26.

Since then, traders have slowly been pricing in the possibility of continued heightened tensions in the region.

"If we see a large, escalated attack, Israel will likely escalate as well," Dennis Kissler, senior vice president at BOK Financial, said in a note to clients on Monday.

On Monday Brent was flat year-to-date, while WTI was up about 1% during same time period.

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance