According to Mikrofonnews Agency (MHA), The U.S. is urging allies and companies to stop buying crude oil from Iran by November, according to reports Tuesday.
A senior State Department official told reporters that companies could face U.S. sanctions if they do not end oil imports from Iran by Nov. 4 at the latest, the reports said, Anadolu Agency reports.
The official also said the U.S. is holding talks with Turkey, China and India, which all import oil from Iran.
After the announcement, international benchmark Brent crude spiked nearly 2 percent to $76.15 at 11:55 EST,
American benchmark West Texas Intermediate was up more than 3 percent to $70.27 a barrel.
President Donald Trump withdrew the U.S. from the historic Iran nuclear deal last month.
The Treasury Department said that same day U.S. sanctions on Iran would take effect in 90-day and 180-day periods — after Aug. 6 and Nov. 4.
Iran’s crude production was around 3.8 million barrels per day in May, according to OPEC’s Oil Market Report for May. The country exports more than 2 million barrels of oil.