"We think at least 250,000 to 350,000 barrels of Iranian crude (a day) could be at risk of disruption if sanctions are brought back into place," Ehsan Khoman, head of research and a strategist at financial group MUFG, told CNBC's Capital Connection on Thursday.
"In terms of the upside risk to oil prices, we think that anything north of $80 for Brent crude and WTI above $75 could firmly take place. We think markets have not fully priced-in the size and magnitude of Iranian sanctions," he said.
Brent futures are currently trading around $74, while U.S. West Texas Intermediate (WTI) is fetching $68 a barrel. Oil prices have risen in recent months following a prolonged period of low prices caused by a global glut in supply.
While the major group of oil producing countries — including OPEC and other non-OPEC producers such as Russia — have held back supply in order to reign in supply, geopolitical events could unsettle that fine balance.
The latest figures from OPEC, for March, indicated that Iran produced around 3.8 million barrels of oil per day, making it the third largest oil producer in the 14-member group, after Saudi Arabia and Iraq.