CRUDE WRAP: WTI (M6) SETTLES USD 0.28 LOWER AT USD 94.81/BBL; BRENT (N6) SETTLES USD 1.21 LOWER AT USD 100.06/BBL

The crude complex was choppy, but ultimately settled lower as mixed Middle East reporting saw two-way trade. In the European morning benchmarks saw losses, to hit initial intra-day lows, on two positive US/Iran reports: 1) Pakistani Foreign Ministry spokesperson, on US-Iran agreement, said "we would expect an agreement sooner rather than later", and 2) Arabic sources: Reaching understandings regarding easing the siege in exchange for the gradual opening of the Strait of Hormuz”, and “coming hours will witness a breakthrough for the situation of the ships stuck in the strait". Initial positive rhetoric, which saw WTI and Brent continue to edge lower to troughs of USD 89.85/bbl and 96.03/bbl, respectively, was offset by later reports that were not quite as supportive. Iran, once again, will not bow to US/Trump pressure, it seems, which got even further legs as the Washington Post wrote that US intelligence said Iran can outlast Trump's Hormuz blockade for months, and a confidential US intelligence assessment added Iran could withstand a US naval blockade of the Strait of Hormuz for 90–120 days, and possibly longer. Moreover, Tasnim sources said Araghchi returned from China and did not go to Islamabad on the way back, which he was reportedly scheduled to do, while a Iran foreign ministry spokesman said it is reviewing the messages with the mediation of the Pakistani side and has not yet reached a conclusion. Accelerating the rebound, WSJ reported that Saudi Arabia and Kuwait lifted restrictions on US military access to bases and airspace, with the US looking to restart Project Freedom to unblock the Strait of Hormuz. This sent WTI into the green; however, a US official told Al Jazeera that the WSJ report is incorrect, resulting in the rally taking a break into settlement. Meanwhile, Iran's Foreign Minister Araghchi criticised the unilateral and provocative resolution submitted by the US and the Gulf on the situation in the Strait of Hormuz. As such, participants await Iran’s response to dictate the next direction of trade.