CRUDE WRAP: WTI (Q6) SETTLES USD 3.08 HIGHER AT USD 73.52/BBL; BRENT (U6) SETTLES USD 3.86 HIGHER AT USD 78.02/BBL

The crude complex saw notable gains on Wednesday, amid a clear souring of relations between Iran and US. The relationship started to deteriorate at the start of the week after the Iran attacks on vessels in the Strait of Hormuz, and US President upped his rhetoric on Iran today, sparking significant risk-off trade and upside in the energy complex, following US attacks overnight; Trump said the Iran ceasefire is over "I think" and as far as he is concerned, it is a waste of time dealing with Iran. Moreover, no reason was given, but US War Secretary Hegseth cancelled his visit to Israel. Trump spoke numerous times throughout the day, with prices extending as the US President said the US will probably hit Iran again tonight; it may be a big attack, and may take over Kharg Island, while threatening they may put the blockade back. While plenty of punchy comments came from the US, reports suggested that Iran would close the Strait of Hormuz and strike twice as many targets in response to any US attack, which once again exaggerated the known moves. As such, all attention will be on this evening and what happens, given the numerous threats. According to TASS, citing an Iranian source,  "Iran suspends talks on a final settlement with the United States".

In the weekly EIA metrics, crude saw a surprise build, distillates an unexpected draw, and a larger-than-forecasted draw in gasoline. Overall, crude production was up 50k W/W at 13.86mln.

WTI traded between USD 71.75-76.08/bbl and Brent USD 75.44-80.59/bbl.