Oil prices peak at $75 on fears of US imposed sanctions on Iran

Oil prices soared to US$75 a barrel based on expectations that the US will re-impose sanctions on major global producer Iran.

After visiting POTUS Donald Trump in Washington, French President Emmanuel Macron revealed he expects Trump to pull out of a breakthrough deal with Iran reached back in 2015.

The agreement saw Iran suspend its nuclear programme in return for the US and other Western powers lifting debilitating sanctions on Iranian oil exports.

However, Trump recently labelled the 2015 deal ‘insane’, stoking fears of a fresh barrage of sanctions on the OPEC member. The President will make a decision on whether to restore the sanctions by May 12.

Oil prices have risen by roughly 20% since early February after OPEC and Russia agreed to continue restricting crude supplies up to 2019, in response to falling demand after the US shale production boom.

Trump recently criticised OPEC, claiming that the organisation was pushing oil prices artificially high.

Global oil prices have also been boosted by a decline in output from Venezuela as a result of ongoing political and economic turmoil.