CRUDE WRAP: WTI (Q6) SETTLES USD 1.89 HIGHER AT 70.44/BBL; BRENT (U6) SETTLES USD 2.17 HIGHER AT 74.16/BBL

The crude complex was firmer, and supported amid numerous reported strikes in the Strait of Hormuz. The first reported attack was overnight, amid reports the IRGC fired at least two missiles at ships in the Strait of Hormuz, hitting two commercial ships. One of them, a Qatari oil tanker, was planning to pass through the Omani route in the Strait of Hormuz with the support of the US Navy and was attacked after ignoring repeated warnings, Fars reported. Following this, UKMTO said it had received reports of two further incidents, which supported benchmarks even further. Saudi Arabia later confirmed one of the vessels struck was a Saudi Tanker and that it holds Iran fully responsible for such attacks and its repercussions. 

On the supply side of things, the Omsk refinery, Russia, reportedly had been halted following on from a drone attack on Monday. Meanwhile, Iraq reportedly boosts West Qurna 1 and Rumaila oil output to full capacity. Finally, Saudi Arabia is said to be planning to expand East-West crude oil pipeline capacity by up to 2mln BPD to increase exports via the Red Sea, according to sources, and the project aims to reduce reliance on the Strait of Hormuz.

EIA STEO: 2026 World Oil Demand at 102.8mln BPD (prev. 102.9mln BPD); 2027 World Oil Demand at 104.8mln BPD (prev. 105.3mln BPD).

Brent traded between USD 72.04-74.41/bbl and WTI USD 68.58-72.04/bbl, and settled just off peaks as benchmarks grinded higher through the duration of the US session.