President Donald Trump's administration has threatened close allies such as South Korea with sanctions if they don't cut off Iranian imports by early November. Tehran, however, vowed on Sunday to foil any USA bid to block its oil exports.
Shortly after, the White House backtracked on Trump's statement, saying that Riyadh is ready for measures aimed at stabilizing the oil market.
It also comes more than a week after OPEC and non-OPEC producers, including the world's top producer Russian Federation, already announced an output rise. That's led to higher prices at gasoline pumps in the U.S.as it heads toward midterm elections for Congress.
On Fox, Trump directed blame at the Organization of Petroleum Exporting Countries, of which Saudi Arabia is a member. "On balance, this leaves the oil market tighter than before, with less spare capacity".
The president also had tough words for other USA allies.
As a result of those sanctions, companies that do business with Iran could face penalties from the U.S. It was previously unclear if the U.S. would penalize European nations that chose to remain in the Obama-era agreement.
Hook declined to say if the kingdom can offer that additional supply, but the U.S. is "working to minimize disruptions to the global market", Hook said.
Brian Hook, the State Department's director of policy planning, told a news conference that the US goal was to get as many countries as possible down to zero Iranian oil imports.
He added, "We will prove that the USA claim to stop exportation of Iran's oil is an illusion". He also said he and senior Treasury Department would visit Gulf states "in the coming days".
Investors had questions as "to whether Saudi Arabia and Russian Federation could or would really be able to ramp production quickly enough", said Rob Haworth, who helps oversee US$151 billion at U.S. Bank Wealth Management in Seattle.
Jahangiri said: "They're begging the Saudis to raise their output so that if Iran's quota decreases nothing will happen to the markets". "If production increases as we now forecast, a large share of this would be eroded, leaving the global oil market with a limited "margin of safety", said Morgan Stanley's Rat.