CRUDE WRAP: WTI (Q6) SETTLES USD 1.99 LOWER AT 73.86/BBL; BRENT (Q6) SETTLES USD 2.67 LOWER AT 77.90/BBL

The crude complex was eventually lower in a choppy day of trade to start the week. Initially, WTI and Brent gapped higher at the open to hit peaks of USD 78.14/bbl and 82.30/bbl, respectively, as Iran announced it shut the Strait of Hormuz due to continued Israeli strikes on southern Lebanon. However, since the open the rhetoric and readouts became more positive and as such saw the energy space reverse, to settle with losses and just off troughs. Overnight, Iran, Qatar and Pakistan all announced positive updates regarding talks with the US, while VP Vance later affirmed that a lot of progress was made and that the Strait is open. Meanwhile, the US Treasury's OFAC authorised the production, delivery and sale of crude oil, petrochemical products, and petroleum products of Iranian origin, showing the US following through with the signed MoU. VP Vance also stated that Iran had agreed to invite the IAEA inspectors back, although Iranian media denied this. Away from the aforementioned topics, newsflow was light on Monday with no tier 1 data or Fed speak, as participants await key risk events later in the week, such as S&P Global Flash PMIs (Tues), GDP, PCE, Fed's Williams (Thurs), and as always any further geopolitical chatter.