CRUDE WRAP: WTI (U6) SETTLES USD 2.49 HIGHER AT USD 86.83/BBL; BRENT (U6) SETTLES USD 3.06 HIGHER AT USD 94.07/BBL

The crude complex was firmer again on Wednesday as US/Iran tensions show no sign of de-escalation, after an 11th consecutive night of attacks. Highlighting this, Trump once again gave punchy rhetoric, which pushed benchmarks higher, as he said, "From this point forward, any time Iran shoots at a ship in the Strait of Hormuz... US will bomb and destroy ONE BRIDGE OR POWER PLANT". In response to this, an Iranian military source stated, "if any bridge or power plant is targeted... we will hit several infrastructures and energy facilities in the region". In addition, disruptions around Bab el-Mandeb and rising shipping costs also underpin oil prices. The top negotiator Ghalifbaf put it more bluntly, "In a region where we do not sell oil, no one will sell oil." Later in the session, Bloomberg reported that QatarEnergy is preparing to extend its LNG force majeure through mid-October, according to people with knowledge of the matter; several buyers in Europe and Asia said separately they are expecting a formal notification in the coming weeks, the report added.In the weekly EIA metrics, crude saw a surprise build, as did gasoline, while distillates saw a larger than expected build. Overall, crude production was -63k W/W to 13.798mln. Ahead, Alphabet and Tesla earnings are the next macro catalyst, as well as, of course, any Middle East updates.