Oil prices have reached the highest level since 2008, with the US and allies in Europe contemplating a ban on Russian oil imports, according to US Secretary of State Anthony Blinken.

This, along with delays regarding the potential return of Iranian crude, has stoked fears of tight market supplies, writes Reuters.

A barrel of European reference oil Brent costs USD 130.68 Monday morning against USD 115.04 Friday afternoon. Concurrently, a barrel of West Texas Intermediate crude trades at USD 126.10 against 111.96 Friday morning.

"A boycott would put enormous pressure on oil and gas supply that has already felt the impact of increasing demand," say analysts from CMC Markets.

Russia is the world's biggest exporter of crude and oil products, which represent 7 percent of the global supply.

Negotiations on reviving the nuclear deal with Iran from 2015 reached a deadlock after Russia requested written guarantees from the US that sanctions against Moscow wouldn't undermine transactions with Iran.

If the Iranian deal is further delayed, and Russian oil stays out of the market for a prolonged period of time, it won't be long before reaching the bottom, writes Reuters.

Indirect sanctions against Russian exports send oil higher

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