CRUDE WRAP: WTI (M6) SETTLES USD 4.11 HIGHER AT USD 102.18/BBL; BRENT (N6) SETTLES 3.56 HIGHER AT USD 107.77/BBL

The crude complex was firmer, and ground higher through the duration of the session, as US/Iran tensions show no signs of abating. Middle East headlines were still in plentiful supply on Tuesday, but not as many market-moving headlines as Trump is set to head to China on Wednesday. As a reminder, source reports on Monday suggested Trump is weighing up possibly resuming military action, but sources added they don't think he would order any before he returns from China.

In terms of today's updates, which garnered slight upside, Iranian Parliamentary spokesperson said, "One of Iran's options in the event of another attack could be 90% enrichment. We will review it in the parliament", and also reports from the Israeli army of interception of a drone in the skies over Eilat launched from the eastern direction, which is the first time air defenses intercept a drone in the Eilat region since the ceasefire of the Iran war. Elsewhere, Trump gave his usual rhetoric and reiterated the ceasefire remains “on life support". Lastly on the Middle Eastern footing, a source familiar with negotiations, confirmed the top directives for the Iranian negotiating team included the condition of five points before starting negotiations on the nuclear file, which were: 1) Ending the war on all fronts; 2) Lifting all sanctions; 3) Releasing frozen funds; 4) Compensation for damages and losses resulting from the war; 5) Recognizing Iran’s right of sovereignty over the Strait of Hormuz - something which US, and Trump, is unlikely to accept.

Shortly before settlement, oil prices rose on reports that Saudi Arabia reportedly carried out unpublicised retaliatory strikes on Iran during the war, according to Reuters, citing sources; attacks were carried out in late March.

EIA STEO: 2026 world oil demand 104.2mln bpd (prev. 104.6mln BPD), 2027 world oil demand 105.6mln BPD (prev. 106.2mln bpd).

WTI traded between USD 98.00-102.66/bbl and Brent USD 104.23-108.45/bbl, ahead of private inventory metrics after-hours, whereby current expectations are (bbls): Crude -2.3mln, Distillates -1.3mln, Gasoline -2.5mln.