Oil prices continued to rise on Monday morning as the United States prepares to announce new sanctions on Iran.
Crude and brent prices have spiked in recent weeks after a US drone was shot down by Iran. The Iranian regime has also been accused of blowing up oil tankers.
US secretary of state Mike Pompeo said “significant” new sanctions would be announced on Tehran on Monday.
Trump said he called off a military strike against Iran on Friday after a US drone was shot down, saying he was “not looking for war.”
Iran said the drone was over its territory, but the US said it was in international airspace.
"There's a very firm tone to trading on well above average volumes," according to Michael McCarthy, chief market strategist at CMC Markets in Sydney.
"We've got concerns about the sanctions against Iran, [but] we are seeing a better demand picture because of the actions of central banks, which is benefiting all commodities ... and we have got a weaker US dollar," McCarthy said.
The rising tensions over recent events, as well as concerns over Iran’s nuclear programmes, saw Brent prices rise 5% last week, its first weekly gain in five weeks.
Iran cannot have Nuclear Weapons! Under the terrible Obama plan, they would have been on their way to Nuclear in a short number of years, and existing verification is not acceptable. We are putting major additional Sanctions on Iran on Monday. I look forward to the day that.....— Donald J. Trump (@realDonaldTrump) June 22, 2019
....Sanctions come off Iran, and they become a productive and prosperous nation again - The sooner the better!— Donald J. Trump (@realDonaldTrump) June 22, 2019