However, a report from the U.S. Energy Information Administration suggests that oil supplies have grown faster than many feared as other major oil exporters have increased production to compensate for the loss, according to Reuters.
The EIA was required by the law imposing the Iranian sanctions to issue a report each two months on the status of the global oil market. The latest report found that world fuel supplies beat demand by 500,000 barrels per day over the course of the past two months, in large part thanks to efforts from Saudi Arabia.
"The report provides that comfort level that (the administration) can continue toward implementation of the sanctions without fear that the market is poised to go crazy for them," David Pumphrey, fellow at Center for Strategic and International Studies and a former Energy Department official, told Reuters.
Nevertheless, Reuters reports that Russian officials have warned European leaders that the embargo against Iran could prove extremely costly.