Oil prices increased to their highest levels since November 2014 as investors are waiting for decision on whether the United States will re-impose sanctions on Iran.
Brent crude oil futures for July delivery were up $1.11 at $75.97 per barrel during Monday’s trading session.
While U.S. West Texas Intermediate (WTI) crude futures for June delivery rose 1.15 percent to $70.52 per barrel. This marked its first time to pass $70 per barrel since November 2014.
The recent increasing oil price is driven by concerns over the possible reimposition of sanctions on Iran. U.S. President Donald Trump will determine whether to extend sanction before the deadline of May 12. Iran resumed its role as a major oil exporter in January 2016.
"It seems that the bureaucratic wheels are turning in Washington to prepare for a sanctions snapback," According to CNBC, RBC Capital Markets analyst Helima Croft said in a note, adding that "the extraterritorial nature of U.S. sanctions, which cover energy, shipbuilding, finance, trade, insurance, etc., means that...Iran's oil exports could credibly be curtailed by 200,000-300,000 bpd."
Oil price has gained more than 17 percent this year as OPEC and its allies continued to cut production. However, the oil output from U.S. kept growing.