Heating Oil Surges After Supply Risks Intensified

2026-03-12 14:27 By Felipe Alarcon 1 min. read

Heating oil futures surged over 7% past $3.96 per gallon, marking the highest since June 2022 as risks that refined product supply from the Persian Gulf will remain halted for longer intensified.

The new Iranian Supreme Leader Mojtaba Khamenei stated that the Strait of Hormuz should stay closed in his first public statement which extended bets on the duration of supply disruptions after multiple tankers were hit by projectiles overnight.

This defiant rhetoric coincided with strikes of increasing intensity between Iran and regional adversaries.

Tankers have been unable to take deliveries since the start of the conflict which effectively removed 20% of global trade and forced producers to cut output as storage capacity was reached.

The International Energy Agency stated that the disruption was the largest in history and triggered a record 400 million barrel release of strategic stockpiles.

Still traders remain skeptical that these volumes can bridge the massive daily supply gap.



News Stream
Heating Oil Hovers at Highest Since 2022
Heating oil futures held above $3.90 per gallon, remaining near their highest level since June 2022, as markets braced for further turmoil in the Middle East. President Donald Trump warned Iran of additional strikes after Supreme Leader Mojtaba Khamenei said the Strait of Hormuz would stay closed and could open other fronts if US and Israeli attacks persist. Meanwhile, the US moved to ease supply concerns by issuing a 30-day license allowing countries to purchase Russian oil and petroleum products stranded at sea. Treasury Secretary Scott Bessent also urged forming an international coalition to escort tankers through the Strait “as soon as militarily feasible.” This follows coordinated IEA releases of unprecedented reserves, which have done little to slow the energy rally. Gasoline is on track for a second consecutive weekly gain.
2026-03-13
Heating Oil Surges After Supply Risks Intensified
Heating oil futures surged over 7% past $3.96 per gallon, marking the highest since June 2022 as risks that refined product supply from the Persian Gulf will remain halted for longer intensified. The new Iranian Supreme Leader Mojtaba Khamenei stated that the Strait of Hormuz should stay closed in his first public statement which extended bets on the duration of supply disruptions after multiple tankers were hit by projectiles overnight. This defiant rhetoric coincided with strikes of increasing intensity between Iran and regional adversaries. Tankers have been unable to take deliveries since the start of the conflict which effectively removed 20% of global trade and forced producers to cut output as storage capacity was reached. The International Energy Agency stated that the disruption was the largest in history and triggered a record 400 million barrel release of strategic stockpiles. Still traders remain skeptical that these volumes can bridge the massive daily supply gap.
2026-03-12
Heating Oil Climbs to 3-½ Year High
Heating oil futures extended their advance by more than 5% to around $3.9 per gallon, reaching their highest level since November 2022, as markets remained focused on severe supply disruptions caused by the Iran war. Iran has told regional mediators it will only consider a ceasefire if the US guarantees that neither Washington nor Israel will strike it again, a condition the US is unlikely to accept, dimming prospects for a near-term resolution. The critical Strait of Hormuz remained effectively closed, forcing major Gulf producers to sharply cut output. Gulf producers have already reduced output by roughly 6%, and deeper cuts from the Middle East remain possible. In response to the supply disruption, the IEA launched a coordinated release of 400 million barrels from emergency reserves, the largest drawdown on record, including 172 million barrels from the US and 80 million barrels from Japan, though the move failed to reassure traders.
2026-03-12