CRUDE WRAP: WTI (Q6) SETTLES USD 6.73 HIGHER AT 78.14/BBL; BRENT (U6) SETTLE USD 7.29 HIGHER AT 83.30/BBL

The crude complex saw gains to start the week as US/Iran tensions escalated, and surged into the close as US confirmed it is to reinstate the Iranian blockade while Saudi Arabia was hit by the Houthis. Overall, tensions between the US and Iran are once again flaring as over the weekend US CENTCOM said it had "completed" its latest round of strikes in Iran, in response to Iran targeting commercial ships in the Strait of Hormuz. Following this, and prompting benchmarks for another leg higher, was US President Trump announcing the US will be reinstating the blockade, adding that the Strait of Hormuz will remain open, with or without Iran, but the US will be will be reimbursed at a rate of 20% on all cargo ships transiting the strait as a payment for providing safety and security. Pushing the energy space further, and showing the conflict encompassing further regions, there was an attack on Abha International Airport in southern Saudi Arabia, and also reports of an explosion in Jeddah from the Houthis after the Saudi's attacked an airport in Yemen to prevent an Iranian jet from landing there. Further, and heading into settlement, which prompted benchmarks to settle at highs and soar into the close, was the US-Navy Led JMIC confirming the blockade on Iran will resume. The US military will begin enforcement of a naval blockade of all Iranian ports and Iranian coastal areas at 20:00 GMT on 14th July; while the blockade will not impede neutral transit passage through the Strait of Hormuz to or from a non-Iranian destination. For the record, WTI traded between USD 72.61-78.45/bbl and Brent USD 77.28-83.54/bbl, settling at highs. 

OPEC MOMR (Jul): Global oil demand is forecast to grow by 0.8mln BPD Y/Y in 2026; global oil demand in 2027 is forecast to grow by about 1.9mln Y/Y BPD.