CRUDE WRAP: WTI (M6) SETTLES USD 2.65 HIGHER AT 98.07/BBL; BRENT (N6) SETTLES USD 2.92 HIGHER AT 104.21/BBL
The crude complex was firmer to start the week, albeit settled off highs, as Trump called Iran's response to the peace plan "totally unacceptable". The main weekend update came as the US President responded to the Iran peace proposal, with further updates coming through the day on Monday. On that, Trump is meeting with his national security team today to discuss the way forward in the Iran war, including possibly resuming military action, after negotiations with the country deadlocked on Sunday, three US officials said via Axios. Within these source reports, they added Trump is leaning toward taking some form of military action against Iran to increase pressure on the regime and force concessions on its nuclear program. Regarding a possible timeline, Trump is expected to leave for China on Wednesday and return Friday, and two officials said they don't think Trump would order military action against Iran before he returns from China. Note, these sources came after Trump said the ceasefire is unbelievably weak and is on life support. Elsewhere, and from Iran, it has reportedly deployed deep-roaming submarines in the Strait of Hormuz, while Iran's Ghalibaf said their armed forces are ready to respond in a lesson-based manner to any aggression, and are open to all options. WTI traded between USD 96.13-100.37/bbl and Brent USD 102.81-105.99/bbl.
The uptick in crude prices signals a market reaction to heightened geopolitical tensions stemming from U.S.-Iran relations. Trump's remarks and the possibility of increased military action could weigh on supply concerns, particularly given Iran's naval maneuvers in the Strait of Hormuz, a critical oil passage. This environment suggests potential volatility in oil prices as further developments unfold.