CRUDE WRAP: WTI (Q6) SETTLES USD 0.26 HIGHER AT 79.60/BBL; BRENT (U6) SETTLES USD 0.22 HIGHER AT USD 84.95/BBL

The crude complex was choppy on Wednesday, but ultimately settled slightly higher as US/Iran rhetoric continues to dominate the tape. Once again, headline newsflow was constant as participants watched the ever-growing escalation, looking for any signs of progress or further steps taken, with Trump earlier threatening Iran's bridges and energy facilities if Iran doesn't come to talks. He also noted that enerrgy facilities would be struck as a last resort. US CENTCOM also announced they began, and concluded a new wave of strikes to further degrade the Iran's military capabilities. Iran's Top negotiator Ghalibaf released a statement where he noted that both diplomacy and military are ways to secure Iran's national interests, perhaps a nod towards a willingness to return to the negotiating table. Meanwhile, US President Trump  briefly gave remarks noting Iran had better behave, adding he does not like giving deadlines. 

Aside from US/Iran, CBS reported that Senior Pentagon officials are quietly eyeing another flashpoint closer to home: Cuba. Military planners have in recent weeks examined a range of options for possible action against the island, including an Army-led air assault involving thousands of US soldiers to be carried out by the 101st Airborne Division, sources told CBS, who added the briefings are not an indication that Trump or the Pentagon have decided to carry out an operation.  

In the weekly EIA metrics, crude saw a shallower draw than expected, distillates saw a larger build than forecasted, and gasoline saw a deeper-than-anticipated draw. Overall, crude production was up 1k W/W to 13.861mln.