CRUDE WRAP: WTI (V6) SETTLES USD 2.65 LOWER AT 82.36/BBL; BRENT (X6) SETTLES USD 3.59 LOWER AT 88.58/BBL

The crude complex was lower as geopolitical developments appeared constructive following Bessent's underwhelming 'Operation Outcast' and accompanying sanctions. Given that, there were numerous headlines through the European morning that garnered crude downside, which started with Pakistan reporting "significant progress" in high-level diplomatic talks held in Tehran, aimed at de-escalating the ongoing US-Iran war. Thereafter, Pakistani Army Chief Munir conveyed an offer to Iran, from the US, to halt the siege and lift sanctions under the MOU, in exchange for opening the Strait of Hormuz and stopping proxy attacks. As such, this saw benchmarks continue to trend lower before extending further as NYT reported that the US is mulling returning diplomats to Middle Eastern embassies as soon as this week, "suggesting that the Trump administration does not anticipate a return to all-out hostilities". Through the US session catalysts were light, and saw WTI hover around session lows for the duration of the session, albeit settling just off them. WTI fell to a USD 81.81/bbl low from a USD 85.84/bbl high, while Brent declined to USD 86.80/bbl from USD 91.29/bbl. Afterhours participants await the weekly private inventory metrics.