The Norwegian government has raised its estimate for estimated state income from the country’s key petroleum sector this year after revising upwards its oil price forecast.

Net cash flow from oil and gas activities is now estimated at Nkr224 billion ($27.8 billion), an increase of Nkr41 billion on the previous projection, based on a higher oil price projection of Nkr519 ($64) per barrel versus an earlier forecast of Nkr438 ($54), according to a statement from the Petroleum & Energy Ministry.

It follows an oil price spike over the past few weeks after US President Donald Trump decide to pull out of the Iran nuclear deal, raising concerns that renewed sanctions could hit production from the Middle East state, with Brent crude currently at $79 per barrel.

The higher income estimate in the revised national budget was also attributed by the ministry to cost reductions by operators that have made more field projects commercially viable, with investments in the oil and gas sector expected at over Nkr150 billion this year, up 4% on last year.