Brent crude rose to $122.64 a barrel due to concerns that Japan could cut the volume of its Iranian crude oil imports by at least 20% to win waivers from US sanctions.
The two nations will reach a basic agreement by the end of February, sparing Japan’s three megabanks from a major blow.
US crude is expected to rise to as much as $120 a barrel, reports Reuters.
Last year, Japan bought some 9% of its crude from Iran and its dependence on fuel imports has increased due to the shutdown of all its nuclear reactors after the Fukushima disaster.
India is also seeking to be relieved from US sanctions.