Crude oil shortage: US assures increased production by Saudi after Iran sanctions

U.S. Energy Secretary Rick Perry told CNBC on Tuesday that Saudi Arabia is increasing its oil production to meet needs arising from sanctions on Iran.

"Our allies, Saudi Arabia for instance, are increasing their production to meet these needs relative to the Iran sanctions," Perry said in an interview with CNBC, adding that the message for U.S. allies around the world is to not do business with Iran.