Oil prices touched $75 on Tuesday, the highest level in almost three and a half years, as fears mounted over the possibility of new us sanctions against Iran.
The Brent crude oil jumped for the sixth consecutive day, trading as high as $75.27 before falling back slightly.
The US is going to decide by May 12 whether to give up a nuclear agreement with Iran and re-impose sanctions.
A movement in the third largest oil producer in the cartel of Opec, threatening to further tighten global supplies.
Oil prices have been rising since the 14 nations of Opec, as well as other producers, such as Russia, decided to restrict the output of last year.
In November, it was agreed to extend the cuts until the end of 2018.
Tamas Varga, of oil broker PVM, said the prospect of President Trump get US out of the nuclear deal that Iran signed with world powers in 2015 was the most significant element of Brent’s recent rally.
“All bets are off in staying in the nuclear deal,” he said.
The president of the united states has said that unless European allies to fix what he has called “terrible flaws” in the agreement of May 12, will be the restoration of US economic sanctions on Iran.
The other nations that signed the agreement, the united kingdom, France, Germany, Russia and China – they all want to keep in place the agreement, which has stopped the nuclear program of Iran in exchange for the majority of the international sanctions being lifted.
The economic recovery of the united states of sanctions against Iran would be a hard blow to the covenant.
Stephen Innes futures brokerage OANDA said that the imposition of new sanctions against Tehran could push the oil prices by more than us $5 per barrel.
Opec production curbs have reduced the reserves, but the cuts have been partially offset by an increase in US oil production.
Meanwhile, demand in Asia, the region that consumes the most oil, has reached a record high, which led to the opening of new refineries in China and Vietnam.
Brent was 14 cents to $74.90 by 1100 BST, while US crude increased 51 cents to $69.15 – its highest price since the November 28, 2014.