But oil traders weren't convinced.
On Tuesday, benchmark USA crude oil dropped 87 cents to $69.84 per barrel in NY.
"In terms of geopolitical risk, Iran is just as important, but are we going to lose 400,000 barrels per day of Iranian production by the end of the year?"
Saudi Arabia, for instance, has the ability to crank up output. These prices are highest since the latter part of 2014 and have gone up due to an aggravating economic situation in the Latin American country Venezuela and a pending decision from the end of United States regarding the imposition of controls on Iran. Bank of America Corp. said Thursday that $100/bbl for Brent crude, the global benchmark, is a possibility next year. The constant fluctuation in oil prices is destabilizing for future investment and security of supply, Iranian Oil Minister Bijan Namdar Zanganeh said.
Still, "oil is trading around $70 as the market is factoring in the possibility that the US will unilaterally terminate the Iran deal and reimpose sanctions".
"It will be more painful for motorists than the past two years - but nothing close to 2011 to 2014 when it was $3.40 to $3.60 a gallon", said Tom Kloza, global head of energy analysis at OPIS. And US stockpiles of crude are down.
The West of England Club said any activity would have to stop the moment any entity that's dubbed a Specially Designated National by the U.S. Treasury's Office of Foreign Assets Control is re-added to a secondary sanctions list.
The Treasury secretary said that the sanctions will also sharply curtail sales of oil by Iran, which is now the world's fifth-largest oil producer. In March, Trump administration launched an offensive against imports from China.
"We will obviously do everything, in conjunction with our businesses, to protect their interests", the source said. "The 20 percent figure is not enshrined in written guidance so the Trump folks could use a higher number". That agreement lets Iranian oil flow through the market at a time when extra supply is at a premium. To sweeten the deal, Iran reduced the freight charges by almost $1 a barrel, which was backed by a commitment from India to increase imports to almost 500,000 barrels a day.
He added that there was a "perfect storm for higher prices" owing to as crude-rich Venezuela's economic woes, which have been made worse by fresh USA sanctions.
Japan's Nikkei 225 dropped 0.4 percent to 22,412.96 and South Korea's Kospi retreated 0.1 percent to 2,447.02.
Hong Kong piled on 1.4 per cent, while Shanghai gained 0.8 per cent after data showed Chinese imports and exports smashed forecasts in April.
"The market at this stage is pricing in a US stepping away from the nuclear deal, so it's allowed the risk premium to build even further", said Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen.
The analysts have warned that deepening the economic crisis in Venezuela's key oil exporter threatens to continue to shrink production and exports.
The firm said it expects prices to rise another 10 percent.
The direct effects from the newly imposed sanctions on Iran will all depend on how high the price of crude oil gets and who will help fill the gap.
And Russian President Vladimir Putin has spoken to German Chancellor Angela Merkel and Turkey's President Recep Erdogan about how to save the 2015 agreement with Iran, according to Russia's official press agency TASS. Experts said they believe the cost will hover around $65.
While it is a loss of a new market-the Post explained that after the Iran deal went into place "aircraft sales were among the most sought-after contracts"-the cancellation of the deals are not expected to impact the companies in a major way. They may not be as willing today".
French automaker PSA Peugeot Citroen reached an agreement a year ago to sell cars in Iran and has reported sales increases in the country since resuming.
On the grace period, Boykin said: "I think that is a very positive thing too".