Oil prices rallied to a 3½ year high on Monday, with the U.S. benchmark breaking above $70 a barrel, as investors braced for the country’s expected exit from the Iran nuclear deal this week.
Brent crude, the global oil benchmark, was up 1% to $75.59 a barrel on London’s ICE Futures exchange having hit $75.89 earlier, their highest level since 2014. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 1% at $70.42 a barrel.
Oil prices have risen over 10% in the past month as U.S. President Donald Trump has indicated it is likely the country will withdraw from a 2015 international agreement with Iran which eased sanctions in return for curbs to its nuclear program. A decision is due by May. 12.
“There is some scope for profit-taking now that prices are at 42-month highs but that is been overshadowed by the potential re-imposition of sanctions on Iran,” said Dubai-based Ehsan Khoman, head of research for the Middle East and North Africa region at MUFG bank.