CRUDE WRAP: WTI (N6) SETTLES USD 4.80 HIGHER AT 92.16/BBL; BRENT (Q6) SETTLES USD 3.86 HIGHER AT 94.98/BBL

The crude complex was notably firmer to start the week, albeit settled off highs amid some more constructive Middle East reporting. The big market mover came just prior to the US cash equity open, whereby Tasnim reported Iran has stopped exchanging messages with the US via mediators, and will "completely" block the Bab al-Mandab Strait and Strait of Hormuz in response to Israeli crimes in Lebanon and Gaza. As such, WTI and Brent saw a kneejerk higher before gradually extending to highs in the US afternoon. Following that, some of the reporting was more risk-positive, which saw benchmarks reside off peaks. Axios reported that a Lebanese official told US that Hezbollah ready for full ceasefire with Israel, and Kann News followed that Israel planned a significant strike in Dahiyeh in Beirut, but it was postponed at the last moment due to American intervention. Continuing to add to this, IRNA said that Pakistani Foreign Ministry announced that Iran has called for Pakistan's continued mediation to de-escalate the current situation and support the ceasefire, while adding to the downside was a couple of Truth posts from Trump; 1) Said he had a very productive call with Netanyahu; there will be no troops going to Beirut, and Hezbollah agreed that all shooting will stop, and 2) Talks with Iran are continuing at a rapid pace. As such oil pared from the earlier highs, but still settled notably in the green. WTI traded between USD 88.45-94.78/bbl and Brent USD 92.90-97.79/bbl.

Meanwhile, OPEC+ is reportedly likely to raise output quotas for July by 188k per day at the Sunday meeting, Reuters reported citing sources; seven members are likely to agree, whilst the group-wide policy is exp. to remain steady.