CRUDE WRAP: WTI (V6) SETTLES USD 3.02 HIGHER AT 96.05/BBL; BRENT (X6) SETTLES USD 3.29 HIGHER AT 101.21/BBL

The crude complex gained as US/Iran tensions continue to ramp-up. As such, WTI and Brent rose throughout the European session and US morning to hit peaks of USD 96.82/bbl and USD 101.58/bbl, respectively, before paring some strength in the US afternoon. Behind the move higher was numerous Middle East updates overnight; US forces struck multiple Iranian tankers tied to the IRGC in response to more attempted missile attacks on a US Navy warship, and in retaliation, Iran launched missiles at targets and launched at least 20 missiles at bases in Jordan. Heading into the cash close on Tuesday, the IRGC warned that oil tanker crews in Kuwaiti and Bahraini ports would be targeted in light of the US Army targeting several Iranian oil tankers. More recently, Al Hadath citing sources,ever-heightening reported that an oil tanker was being targeted in the Strait of Hormuz, but a US official swiftly told NewsNation that there are no attacks being carried out by US forces right now. Elsewhere, albeit still on the geopolitical footing, Pakistan is reportedly considering strikes against Houthi targets in Yemen under the “Makkah Pact” defense framework with Saudi Arabia and Turkey, and strikes may begin in the coming days. Ahead, any Middle East updates will of course be watched alongside the US inflation reports (PPI and CPI) on Thursday and Friday, respectively.

US President Trump spoke after the crude settlement, where he said that the war will end after the election - noting they could do a deal, but he is not looking for a deal with Iran. He said oil prices will tumble lower after the election, but gasoline prices will take a bit longer, but he aims to get gasoline prices below USD 2. His remarks had little impact on price action.

EIA STEO: World oil demand 102.6mln BPD (prev. 102.7mln BPD), 2027 demand 105mln BPD (prev. 105mln BPD).