Crude oil prices saw the largest increase in over two weeks on Tuesday, as the usa announced additional sanctions on Iranian crude oil, and OPEC+ made progress toward further delaying production increases.

WTI crude oil futures rose by 2.7%, closing near $70 per barrel, marking the largest single-day gain since November 18.

OPEC+ representatives revealed that the organization is making progress towards reaching an agreement to delay the timeline for restoring oil production by another three months. The alliance will finalize the plan in an online meeting on Thursday. Brent climbed above $73 per barrel.

The usa announced sanctions on 35 entities and vessels on Tuesday, stating that they play a key role in a shadow fleet transporting illicit Iranian oil to foreign markets. Oil prices widened their gains after this announcement.

The possibility of the usa reinstating strict sanctions on Iran from Trump's first term poses a threat to the latter's production. Since Trump took office, Iran's crude oil production has increased by about 1.2 million barrels per day.

Francisco Blanch, head of commodity research at bank of america, stated during a media roundtable that the future trend of oil prices largely depends on sanctions against Iran and Venezuela, and certainly OPEC as well; if production from these two countries declines, Brent could rise to the $80 range.

WTI crude oil futures for January delivery rose by 2.7%, settling at $69.94 per barrel.

Brent crude oil for February rose by 2.5% to $73.62 per barrel.