[MARKET ANALYSIS] Crude futures gain on reports of an extended US blockade

Crude futures started the APAC session in a muted manner, with energy prices grinding lower in a tight USD 1/bbl range. In recent trade, volumes have picked up and prices have surged higher, with WTI regaining the USD 100/bbl handle. This comes following a WSJ report, citing sources, stating that US President Trump has told officials to prepare for an extended blockade of Hormuz, a less risky option compared to resuming strikes or walking away. Currently, WTI and Brent trades at the upper end of a USD 98.93-100.38/bbl and USD 110.56-111.80/bbl range respectively.  Precious Metals lack direction, with spot gold rotating either side of the USD 4600/oz handle (USD 4576-4610/oz range). The modest gains seen at the start of trade was quickly pared following the WSJ report.  3M LME Copper trades on the front foot, continuing to pare back Tuesday’s losses, as positive sentiment in Chinese equities support the red metal.