The latest turmoil came as US crude futures surged more than 7% to trade at $124.17 a barrel, the highest level since August 2008. Brent crude also rose to the highest level since 2008, up 8% to $127.66 a barrel.
“In the event of any implementation [of the ban], the move will further exacerbate the supply-demand imbalance in an already tight oil market,” wrote Yeap Jun Rong, a market strategist for IG Group.
“Elevated oil prices may pose a threat to firms’ margins and consumer spending outlook, at a time where the Fed will face greater pressure of having to overcorrect with quicker and larger rate hikes in light of inflationary pressures,” he added.
Delays to the conclusion of Iranian nuclear talks added to investor concerns about supply disruptions, Yeap said.