CRUDE WRAP: WTI (U6) SETTLES USD 2.07 HIGHER AT 77.29/BBL; BRENT (V6) SETTLES USD 3.04 HIGHER AT USD 82.49/BBL

Crude prices settled higher as tensions between the Houthis and Saudis grew, whilst the initial Iranian reporting on the text of the Iran-Oman deal showed unfavourable terms for the US and peers. Any optimism over reports of indirect talks between the US and Iran being in the final stages was later offset. The Houthis confirmed they carried out a broad military operation against the Saudi-backed Yemeni government forces, saying it will "persist in the equation of siege for siege until the siege on our country is lifted". Meanwhile, Iranian media reported the text details of the Iran-Oman deal that outlines management of the Strait of Hormuz. Details are highly unfavourable to the US and countries in the region, 1) US & Israeli ships can't pass through, 2) Countries that have caused damage to Iran will not receive permission to pass through the Strait until compensation is paid, 3) Heavy fines, including up to 20% of the value of the goods, will be imposed on violators - all together, it seems unlikely the US or the GCC will welcome the deal. Note, Iran reported the plan is still in the expert review stage, and the parliament has asked experts to submit their suggestions for completing it. WTI and Brent traded between USD 74.57-78.15/bbl and USD 78.92-83.06/bbl, respectively.

• Ukrainian President Zelensky says Ukraine struck Bashneft-Novoil (~150k BPD) and Slavneft-Yanos (300k BPD) refineries, two Russian patrol boats and shadow fleet vessels in long-range attacks aimed at curbing Moscow’s oil revenues
• Saudi Arabia sets September Arab Light crude OSP for Asia at USD 2/bbl discount to Oman/Dubai average; To the US at ASCI +3.60/bbl; To NW Europe at ICE Brent settlement -2.15/bbl.
• Russia's crude oil and condensate production rose by around 100k BPD in July from June to just over 9.0mln BPD, according to Reuters.