On Thursday, President Donald Trump said that any nation or anyone purchasing oil or petrochemicals from Iran will be prohibited from doing commerce with the United States.
Global benchmark Brent climbed $1.07, or 1.75%, to end at $62.13, while U.S. crude oil futures increased $1.03, or 1.77%, to conclude at $59.24 a barrel. One of OPEC's largest oil producers is Iran.
Trump said in a tweet on his social media site Truth Social that "any country or individual who purchases ANY AMOUNT of oil or petroleum chemicals from Iran will be subject to, immediately, Secondary Sanctions." "They will not be permitted to engage in any kind of business dealings with the United States of America."
In February, Trump issued an order for a "maximum pressure" campaign against Iran with the goal of halting all of the Islamic Republic's oil exports.
In comments at the White House on Thursday, the president said that Iran is funding extremist organisations throughout the Middle East.
In April, Trump also started talks over Iran's nuclear program in Oman. In February, he declared his intention to stop Iran from developing a nuclear weapon.
Tehran has denied that it is looking for a weapon like that. In February, the president said that he would rather make a deal with Iran. Trump withdrew the United States from the nuclear deal that President Barack Obama had signed with Iran during his first term in office.
According to Scott Modell, CEO of consultancy company Rapidan Energy, Trump's remarks are obviously aimed at China, which imports more than a million barrels of oil from Iran every day.
Model said that until the White House targets Beijing's state-owned businesses and infrastructure, U.S. sanctions are unlikely to affect Iranian oil going to China.
Modell, a former CIA officer, told CNBC that the president's remarks "don't signify a change in the administration's drive to reach a new deal with Iran but rather underscore Trump's belief in negotiating through strength."
Early in April, Trump placed what he refers to as "secondary tariffs" on any nation that purchases oil from another OPEC member, Venezuela.
