[size=36]Oil rises, expected to end US exemptions from Iran sanctions[/size]
Oil prices jumped on Monday after it appeared that the United States is announced to oblige all Iranian oil buyer to end their imports from it or succumb to sanctions.
Brent crude futures rose 3.3 percent to $ 74.31 a barrel, its highest level since November 1, before falling to $ 73.63 a barrel by 0604 GMT, up 2.3 percent from the last close.
US West Texas Intermediate crude futures rose 2.9 percent to $ 65.87 a barrel, their highest since October 31. By 0544 GMT, the price was $ 65.50 a barrel, up 2.3 percent from the previous settlement.
The Washington Post reported on Sunday that the United States was preparing to announce on Monday that current buyers of Iranian oil would not receive further exemptions from sanctions.
Secretary of State Mike Pompeo will announce that "as of May 2, the State Department will not grant further exemptions from sanctions to any country that imports crude or condensates from Iran," a newspaper columnist said, quoting two unnamed US State Department officials.
A source familiar with Reuters confirmed the report, but a spokesman for the State Department declined to comment.
The suspension of the exemptions will reduce oil supplies in a market already experiencing shortages due to US sanctions on Iran and Venezuela, another OPEC member.
OPEC and other international oil producers have also been cutting supplies since the beginning of the year to reduce supply to world oil markets and boost prices.
As a result, Brent prices rose more than a third this year, while West Texas Intermediate rose more than 40 percent in the same period.