CRUDE WRAP: WTI (V6) SETTLES USD 0.32 HIGHER AT 84.06/BBL; BRENT (V6) SETTLES USD 0.15 HIGHER AT 91.02/BBL

The crude complex saw slight gains on Tuesday, and traded within tight parameters in light holiday trade. Middle East headlines were the highlights, and the main market came after the usual punchy Trump rhetoric. The US President said there are no talks or conversations going on, or scheduled, with Iran and the naval blockade remains in full force and effect. As such, immediate upside was seen in crude, but it swiftly pared. Further from the Iranian side, the Foreign Minister remarked that Tehran rejected ceasefire proposals; reiterating that the war must end, not pause, albeit seeing little reaction. Elsewhere, the UKMTO said it received a report of an incident 40nm Southeast of Al Mocha, Yemen, while warning sirens were heard in Dubai, although the UAE later reported the situation is safe. Ahead, the weekly private inventory metrics after-hours will be watched as well as any further geopol updates. WTI (V6) traded between USD 83.77-85.07/bbl, while Brent (V6) traded between USD 90.61-92.00/bbl.

Sessions of this kind, thin holiday liquidity with the tape driven by single headlines, tend to produce outsized intraday spikes that mean-revert once the rhetoric proves not to be followed by action; the fade in the initial Iran-driven rally here fits that established pattern. The distinction worth drawing is between supply-side risk that is verbal and risk that is physical: blockade and no-talks language from Trump supports the prompt end of the curve and the Brent-Dubai and WTI-Brent spreads only so long as tanker flows, insurance rates, and freight actually tighten, and past episodes of Gulf tension have shown crude giving back the geopolitical premium quickly when loadings continue uninterrupted. The UKMTO incident report near Yemen and the Dubai sirens are the type of input that has historically mattered only when repeated and confirmed, since one-off maritime reports rarely alter flows through Hormuz or Bab el-Mandeb on their own. Tehran rejecting ceasefire proposals while calling for an end rather than a pause keeps the tail risk alive but is consistent with the prior form of drawn-out standoffs in which neither side escalates to infrastructure. The near-term tells are the weekly private inventory print after-hours and the official figures that follow, since in thin tape a stock draw or build can dominate headline risk, plus any confirmation or denial around the reported maritime incident. Settlement near the middle of the day's range after the spike and fade is the usual signature of a market waiting for verification rather than repricing.