Crude oil prices rose higher on Wednesday, which saw US WTI trade break the $ 70 a barrel price level for the first time since 2018.
The rise has been driven by a statement by top U.S. diplomats who say that sanctions against Tehran will not be lifted even if the U.S. reaches a nuclear deal with Iran.
This means that additional supplies of Iranian crude oil may not return to the market.
In a statement released Tuesday, U.S. Secretary of State Anthony Blinken said he expects that despite compliance with the 2015 Joint Comprehensive Plan of Action (JCPOA), hundreds of sanctions will remain in place, including sanctions imposed by the Trump administration.
Following the report, crude oil prices have soared higher and broken their latest annual high.
Brent crude oil traded up 1% to trade around $ 72 a barrel, the highest level since May 2019. Meanwhile, US WTI jumped 1.2% to $ 70.05 a barrel, the highest since October 2018.
Also supporting the price strengthening, the American Petroleum Institute (API) reported U.S. crude oil supplies fell by 2.1 million barrels last week, signaling fuel demand in the U.S. continues to show recovery.
