CRUDE WRAP: WTI (M6) SETTLES USD 1.45 LOWER AT 99.40/BBL; BRENT (M6) SETTLES USD 0.26 HIGHER AT 105.33/BBL

Crude prices settled in the red, with WTI and Brent diverging. Gains in the European morning faded as hopes for a return to the negotiating table supported sentiment. Middle East press reported that Iran's Foreign Minister Araghchi will arrive in Islamabad today, while reports also touted a serious breakthrough. This drove crude to session lows, but the downside then started to pare as further reports suggested Iran's top negotiator with the US, Parliament Speaker Ghalibaf, had resigned from his role in talks with the US, a story that was later denied by Iranian media. Meanwhile, reporting was mixed regarding US/Iran direct negotiations resuming; Iran appears not to have scheduled talks with the US, and will instead hold bilateral conversations with Pakistan, according to the latest. Nonetheless, crude took another hit after US media reported that Envoys Witkoff and Kushner would travel to Islamabad for negotiations with Iran's foreign Minister Araghchi. However, Iranian press has continued to deny that Tehran had decided to return to talks with the US, leaving crude to settle off its lows. Elsewhere, the Baker Hughes rig count showed oil rigs down three at 407, while natgas rigs rose four to 129, taking the total up one to 544. Attention next week remains largely on geopolitics, and weekend reports on the progress of potential talks.