CRUDE WRAP: WTI (V6) SETTLES USD 0.79 HIGHER AT 91.01/BBL

The crude complex extended on its weekly gains as Wednesday's US/Iran headlines did little to shift the overall backdrop. Following the strikes from both sides on Tuesday, Iran reiterated that it does not reject negotiations but said the US must fulfil its commitments before Tehran takes steps to reopen Hormuz, while a US source said the latest strikes were pre-emptive and targeted an alleged Iranian plot against submarine cables in the Strait. Trump later remarked that the strikes were due to Iran trying to build a rocket that drops mines, so they took it out. As Trump spoke, benchmarks saw two-way action as he noted renewed campaign against Iran will not continue for too long and oil prices will come down, but then added that he is prepared to do another attack on Iran. Further on this footing, Saudi Foreign Ministry said it has urged all parties to remain calm, halt escalations and respect international law and return to negotiations.

Away from the Middle East, the weekly EIA data saw a larger draw than expected in crude stocks, as seen in the private figures last night, while gasoline was a shallower than anticipated draw; distillates noticed an unexpected build. Weekly crude production was up 19k W/W to 13.862mln. Note, little move was seen on the dataset. WTI traded between USD 88.97-92.29/bbl and Brent USD 93.52-97.04/bbl.

Sessions where crude holds a geopolitical premium despite de-escalatory noise fit a familiar wartime pattern: benchmarks reprice on physical disruption to flows, not on strikes or rhetoric alone, and the premium has historically bled out within sessions whenever Hormuz transit continued uninterrupted. The tell through past Gulf escalations has been freight rates, insurance costs and tanker behaviour in the Strait rather than the headlines themselves; strikes on infrastructure peripheral to export flows have tended to add a few dollars of risk premium that fades once loading data confirm continuity. The negotiating choreography here, conditionality on reopening Hormuz, Saudi calls for calm, mixed signals from Washington on campaign duration, mirrors prior episodes where jawboning capped rallies without breaking them. On the domestic side, the EIA print conformed to a well-worn sequence: the API figures the prior evening front-run the official draw, and the market's muted response to a headline crude draw alongside a soft gasoline number and a distillate build is consistent with mid-cycle reads where product detail matters more than the crude line. Production edging toward record territory keeps the structural cap narrative alive underneath the geopolitical bid. The follow-ons worth noting are tanker tracking through the Strait, any shift in official rhetoric from conditional to concrete, and whether the weekly gains hold into expiry given the contract month flagged in the wrap.