Brent crude oil hits highest value in 2019. Click to know

The news comes as the US said earlier this week that it would not grant any more waivers and the eight countries, including India

New Delhi: Brent crude oil rose to its highest in 2019 on Thursday when it settled at $75 per barrel in the aftermath of US tightening the sanctions on Iran. Gains in US prices were crimped by a surge in US supply. Brent crude futures stood at $75.01 per barrel on Thursday and were at $74.90 per barrel, up 33 cents, or 0.4 percent, from their last close, a Reuters report said. US West Texas Intermediate (WTI) crude futures were at $65.94 per barrel, registering an increase of 5 cents from their previous settlement.

The backdrop

The news comes as the US said earlier this week that it would not grant any more waivers and the eight countries, including India, which had been given exemption earlier will have to cut down their oil imports from Iran to zero. The move was aimed at stepping up pressure on Iran to give up its nuclear programme.

"Following the US decision to toughen its sanctions on Iran … we have revised up our end-year forecast for Brent crude from $50 to $60 per barrel," analysts at Capital Economics said in a note.

The US decision came amid supply cuts by the Organisation of the Petroleum Exporting Countries (OPEC) since the start of the year aimed at propping up prices. Brent prices have risen almost by 40 percent since January.

US says enough alternatives to ease transition

Brian Hook, US Special Representative for Iran and Senior Policy Advisor to the Secretary of State, said on Thursday, "There is plenty of supply in the market to ease that transition and maintain stable prices." A consultancy called Rystad Energy also said that Saudi Arabia and its allies will be able to replace Iranian oil.