Dubai: Saudi Arabia is willing to compensate for any potential loss of crude supply if the US ends waivers granted to buyers of Iranian oil, but the kingdom will assess the impact on the market before raising its output, a source familiar with Saudi thinking told journalists on Monday.

The United States was expected to announce on Monday that buyers of Iranian oil need to end imports soon or face sanctions, a source familiar with the situation told Reuters, triggering a 3 per cent jump in crude prices to their highest so far this year.

The source familiar with Saudi thinking said any action by the top oil exporter depends on the certainty of scrapping the waivers and its effect on the oil market.