CRUDE WRAP: WTI (N6) SETTLES USD 4.13 LOWER AT 80.75/BBL; BRENT (Q6) SETTLES USD 4.16 LOWER AT 83.17/BBL

The crude complex saw steep losses as over the weekend the US and Iran reached a framework peace agreement. While the full document itself hasnt been released yet, officials have been revealing some details, but there are some discrepancies. Nonetheless, the MoU has been signed virtually by US President Trump, VP Vance and Iran Parliamentary Speaker Ghalbaf, but an official signing will take place in Switzerland on Friday. Trump made it clear on the announcement that the US will lift its naval blockade, whilst the Iranians will reopen the Strait of Hormuz. As such, WTI and Brent gapped lower at the open and continued to trundle lower to troughs of USD 79.70/bbl and 82.40, respectively, amid the positive Middle East developments. Whilst there were still some discrepancies in reporting from the two sides, participants await both countries signing on the dotted line and full details, which will slowly bring oil flows back to pre-war levels, albeit not immediately. Away from the Middle East, traders also await the FOMC on Wednesday and Chair Warsh’s first policy meeting.