CRUDE WRAP: WTI (V6) SETTLES USD 2.05 LOWER AT 85.01/BBL; BRENT (X6) SETTLES USD 2.13 LOWER AT 90.54/BBL

The crude complex saw pressure on Monday, despite the escalating of tensions between US and Iran, with the former launching 'Operation Economic Outcast'. In Treasury Secretary Bessent's press conference he said they are going to end the Iran threat, and they have two paths, normalcy or total isolation. As such, the US Treasury announced sanctions on nearly 60-Iran linked entities, people, and vessels across nuclear, missile, cyber and oil networks, alongside targetting five sectors for potential secondary sanctions, alongside announcing that any country helping Iran must cease to do this and have a finite time to act. Despite all this, oil prices were pretty unreactive to the newsflow. Prior to this, benchmarks saw upside on source reports that the US Treasury is expected to announce it will broaden the scope of secondary sanctions on nations/entities doing business with Iran. In addition, benchmarks also saw a bit of strength after the UKMTO received a report of an incident 63NM west of Yanbu, Saudi Arabia; tanker was struck by an unknown projectile. For the calendar, Oman's Foreign Minister will visit Tehran on Tuesday regarding maritime security and freedom of navigation in the Strait of Hormuz. Looking ahead, attention remains on further US/Iran rhetoric, if there is any retaliation from the latter, and the outcome of Operation Economic Outcast. Sources via Al Jazeera also reported that Trump spoke with the Pakistan Army Chief ahead of his visit to Tehran in an attempt to use Pakistan's influence to resume Iran/US negotiations. WTI traded between USD 84.36-86.57/bbl and Brent USD 90.17-92.06/bbl.