Oil prices hit their highest level in 2019 on Tuesday after Trump announced to end of all exemptions granted on Iranian oil by the end of May.
The United States on Monday demanded Iran’s biggest customers to stop buying Iranian oil or face sanctions, one million barrels of oil exports daily, fully half of which go to China, the order was also aimed at India, Japan, South Korea and Turkey.
Despite the move by Washington, analysts said global oil markets would be able to cope with the Iran disruption as there was enough spare capacity from other suppliers.
Brent crude futures were at $74.58 per barrel at 0628 GMT, up 0.7 percent from their last close and their highest level since November 2018.
U.S. West Texas Intermediate (WTI) crude futures marked their strongest since October 2018 at $65.10 per barrel, up 0.8 percent from their previous settlement.
Before the reimposition of sanctions last year, Iran was the fourth-largest producer among the Organization of the Petroleum Exporting Countries (OPEC) at around 3 million barrels per day (bpd), but April exports have shrunk to below 1 million bpd according to analyst.