On May 9, Trump withdrew from the 2015 Iran nuclear deal, sending shockwaves through Iran's economy. The announcement was made following a cabinet meeting headed by Saudi Arabia's King Salman bin Abdulaziz Al Saud.
In a Tuesday statement, Saudi Arabia asserted its willingness to use spare production capacity to increase market supply.
The cabinet commended "constructive cooperation between producing countries from inside and outside OPEC, which resulted in the agreement of 25 countries to increase oil supplies, taking into account the current market conditions".
OPEC together with a group of non-OPEC producers led by Russian Federation started to withhold output in 2017 to prop up the market.
A source last week told Reuters Saudi Arabia produced 10.8 million bpd in June and it aimed to pump 11 million bpd in July.
State Department Director of Policy Planning Brian Hook told reporters on Monday that Iran is not a "normal" country and must meet 12 demands in order to be relieved of USA sanctions.
Trump's suggestion means he wants Riyadh to increase production to 12 million bpd - something the kingdom has never done in the past. It was only a few days ago that Saudi Arabia and its coalition partners said they would add 1m bpd of supply back onto the market, with many of them acknowledging that, in reality, the figures would be closer to 600,000 bpd.
The Trump administration seems determined to elbow out most Iranian oil from markets by November 4. China, the world's biggest oil consumer, and India, the country with the fastest-growing appetite for energy, added their own complaints after prices rose. President Trump has always been critical of OPEC and rising oil prices, and the agreement from Saudi Arabia has a broad impact on global oil supply while other nations, like Venezuela, cope with falling production.
WTI (oil futures on NYMEX) witnessed good two-way price movements so far this Wednesday, now down more than a dollar from daily tops at $ 74.88, as the recovery attempts remain capped by the $ 74 handle.
He added that it is "incorrect and unwise" to think that "one day all oil producing countries would export their surplus oil and Iran would be the only country that can not export its oil".
Also earlier on June, US officials visited Japan to urge Tokyo to find an alternative oil supplier to Iran.
USA crude futures were also down 25 cents at $73.89, not far from Tuesday's 3-1/2-year high above $75. The two main importers of Iranian crude are China and India; both of whom import around 400,000 BPD now. "We are working to minimize disruptions to the global market, but we are confident there is sufficient global spare oil capacity".