Oil prices hit four-year high as markets await US sanctions on Iran

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The price of Brent crude oil could hit $100 amid fresh sanctions, predicts bank (Source: Getty)

Oil prices hit a four-year high this morning as the market reacted to ongoing uncertainty over US sanctions on Iran.

Brent crude - considered the international benchmark - rose almost half a per cent to $83.09 (£63.70) per barrel in early trading, after rising as high as $83.32.

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West Texas Intermediate, meanwhile, climbed 0.25 per cent to $73.43 after hitting $73.65 overnight.

Investors expect Brent crude to hit $100 per barrel, according to ANZ Bank, as President Donald Trump looks to impose fresh sanctions on Iran next month after pulling the US out of the Iran nuclear deal over summer.

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The sanctions would squeeze Iranian crude exports, hitting the market despite other exporters increasing supply.

Dean Powell, vice president of market analysis at Oanda, estimated it could cut Iranian oil supply by 1.5m barrels per day from 4 November.

Trump reportedly called Saudia Arabia’s King Salman over the weekend to discuss ways to maintain the US’s supply of oil once the sanctions take effect.

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