NEW YORK: Oil prices gained Monday as the Trump administration ended waivers for countries that had been importing Iranian crude in spite of US sanctions.

Near 1250 GMT, US benchmark West Texas Intermediate for May delivery was at $65.39 a barrel, up 2.2 percent in electronic trading before the market officially opened.

Brent crude oil in London for June delivery advanced 2.5 percent to $73.78 a barrel.

Oil prices held their gains after surging to their highest point since late 2018 overnight on reports of the US policy shift, which was made official by the White House early Monday.

The White House said Saudi Arabia and the United Arab Emirates -- close US allies that back President Donald Trump's hawkish stance against regional rival Iran -- would work to make up the difference in oil to ensure that global markets are not rocked.

"This decision is intended to bring Iran's oil exports to zero, denying the regime its principal source of revenue," the White House said in a statement.