CRUDE WRAP: WTI (V6) SETTLES USD 1.34 HIGHER AT 101.39/BBL; BRENT (X6) SETTLES USD 1.07 HIGHER AT 105.68/BBL

The crude complex started the week on the front foot, albeit settling around session lows. At the reopening of trade, benchmarks gapped higher, supported by the postponement of the Iran-Gulf nations meeting and the shutdown of Saudi Arabia's East-West pipeline. Further upside was seen following reports that the IRGC shot down a US drone and after comments from the Iranian Foreign Ministry, before crude caught another bid after AP reported that the crucial Saudi pipeline will remain mostly out of service for several weeks while repairs are carried out. Against this backdrop, WTI and Brent rose to peaks of USD 104.95/bbl and USD 109.80/bbl, respectively. However, several more constructive geopolitical developments emerged through the US afternoon, helping the energy complex pare some of its earlier gains. Firstly, Trump said Ukraine and Russia had agreed not to strike each other's energy infrastructure. Secondly, Trump remarked that Iran wants to make a deal "quickly and badly", adding that he would determine whether the US is open to the concept, although Iranian sources quickly pushed back on the remarks. Finally, ILNA, citing Pakistani sources, reported that the US is seeking a "step-by-step" agreement with Iran. Collectively, the more constructive geopolitical headlines helped push WTI and Brent back towards session lows of USD 100.79/bbl and USD 105.17/bbl, respectively, with benchmarks settling around these levels.