Oil prices reached $80 a barrel on May 17, driven by concerns over falling supplies due to renewed US sanctions on Iran, according to Reuters.
Crude prices have not breached the $80 mark since November 2014.
Brent crude futures reached an intraday peak of $80.18 a barrel before falling back to $79.67 at 13:26 GMT.
US West Texas Intermediate (WTI) crude futures rose 41 cents to $71.90, its highest since November 2014 when prices reached $72.30.
On May 8, US President Donald Trump announced that the US would withdraw from the 2015 Iran nuclear deal, and would re-impose sanctions on the Islamic republic. US national security adviser, John Bolton, told reporters that companies will be given between 90 and 180 days to end their commercial agreements with Iranian entities, according to Reuters.
The expected reduction in Iranian exports would come amid OPEC-sanctioned production cuts and Venezuela’s continued decline in oil production, both of which have led to higher prices.
French major Total stated on May 16 that it may be forced to abandon its role in the multibillion dollar South Pars gas project if it does not secure a waiver from the US.
The International Energy Agency also warned on May 16 that it reduced its global demand forecast for 2018 from 1.5 million barrels per day (mb/d) to 1.4 mb/d, indicating that high oil prices could affect consumption.