The Trump administration is demanding countries no longer import any oil from Iran, removing waivers from US sanctions on crude granted to some of Iran’s largest customers as part of an escalating effort to pressure the regime in Tehran.

The move sent oil prices to new highs for the year on Monday after the US said nations including India and China would face penalties if they continued to import Iranian oil as part of an effort to bring Iran’s crude exports “to zero”. Japan, South Korea and Turkey would also face US sanctions if they did not comply after the waivers are withdrawn next month.

“Any nation or entity interacting with Iran should do its due diligence and err in the side of caution,” said Mike Pompeo, the US secretary of state. “How long we remain on zero depends solely on Iran’s behaviour.”