CRUDE WRAP: WTI (N6) SETTLES USD 4.97 HIGHER AT 101.51/BBL; BRENT (N6) SETTLES USD 6.27 HIGHER AT 114.44/BBL

The crude complex was firmer, as US/Iran tensions once again ramped up in a day dominated by Middle East headlines. Over the weekend, US President Trump said the US will guide neutral ships safely out of the Strait of Hormuz, and then conflicting reports followed in early morning trade. Numerous outlets said two missiles hit a US patrol boat, after earlier warnings were disregarded, but senior US officials and CENTCOM denied these reports, which saw two-way action across markets. Initially, risk off trade was seen, but reversed on the denials. Since then, benchmarks have risen since the US cash open to see WTI and Brent hit peaks of USD 101.59/bbl and 115.30/bbl, respectively, as UAE air defense systems have reportedly responded to six separate missile threats, and UAE's Fujairah port had a massive fire after being struck. Following these headlines, a source reportedly told CNN's reporter in Dubai that they expect US/Israeli strikes on Iran within the next 24 hours, and UAE Foreign Ministry stated it reserves full and legitimate right to respond to Iranian attacks. Further escalating the war, a South Korean cargo ship was hit in the Strait, which saw Trump request for the nation to join the mission. Note, we are yet to hear from the US President regarding UAE, so await any further remarks. Even more on this front, Iran said it had no plans to target UAE, but later followed up with, via an Iran military source, if the Emiratis become Israel's playthings and make mistakes, they will learn a lesson that they will never forget, adding if UAE takes an unwise action, all its interests will become Iran's target, and no point of the UAE's facilities will be safe. As such, participants await any further updates, escalation, or de-escalations overnight, with US' Caine and Hegseth to give a press briefing tomorrow.