Heating Oil Surges to June -2022 Highs

2026-03-18 15:05 By Felipe Alarcon 1 min. read

US heating oil futures surged past $4.26 per gallon to reach their highest level since June 2022 as unprecedented strikes on Iranian upstream energy infrastructure and a sharp drawdown in distillate inventories intensified global supply anxieties.

This record rally follows reports that US and Israeli airstrikes hit the South Pars gas field to mark the first known direct engagement with critical production assets in the current conflict.

While US crude inventories rose by 6.16 million barrels to 449.3 million in the week ending March 13th, distillate stocks fell by a steeper than expected 2.5 million barrels.

This supply crunch is magnified by the effective closure of the Strait of Hormuz and protectionist export caps from major refiners in China and South Korea.

Although Iraq plans a partial resumption of exports via Turkey, the market remains focused on retaliatory threats from Tehran following the killing of security chief Ali Larijani.



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Heating Oil Surges to June -2022 Highs
US heating oil futures surged past $4.26 per gallon to reach their highest level since June 2022 as unprecedented strikes on Iranian upstream energy infrastructure and a sharp drawdown in distillate inventories intensified global supply anxieties. This record rally follows reports that US and Israeli airstrikes hit the South Pars gas field to mark the first known direct engagement with critical production assets in the current conflict. While US crude inventories rose by 6.16 million barrels to 449.3 million in the week ending March 13th, distillate stocks fell by a steeper than expected 2.5 million barrels. This supply crunch is magnified by the effective closure of the Strait of Hormuz and protectionist export caps from major refiners in China and South Korea. Although Iraq plans a partial resumption of exports via Turkey, the market remains focused on retaliatory threats from Tehran following the killing of security chief Ali Larijani.
2026-03-18
US Heating Oil Futures Top $4
US heating oil futures rose to $4 per gallon, the highest level since June 2022, as the war in Iran continues to disrupt global energy supplies, with prices up more than 50% since late February. The surge is driven by the near closure of the Strait of Hormuz, a key route for about 20% of global oil flows, prompting countries to adopt protectionist measures to keep fuel domestically. Diesel prices have risen sharply, alongside jet fuel above $200 per barrel and fuel oil nearing $140, increasing costs across transport, agriculture and construction. Strong reliance on Persian Gulf refining has amplified the move. China has begun canceling fuel exports while South Korea plans to cap shipments, adding to supply pressures. Meanwhile, rising heating demand amid cooler forecasts in parts of the US is also supporting prices, raising concerns about broader economic impacts and political pressure on the Trump administration.
2026-03-17
Heating Oil Prices Rebound
Heating oil futures rose above $4.0 per gallon on Tuesday, rebounding from the previous session’s losses as Iran intensified strikes on oil infrastructure across the Middle East, while several countries rejected President Trump's call to escort tankers through the Strait of Hormuz. Prices had declined 4.4% on Monday on hopes that more vessels would soon be able to transit the strait. Although shipping traffic through the strait remains stalled, several oil tankers were able to pass through over the weekend. India is working to secure safe transit for six vessels, while several other countries are reportedly engaging in diplomatic back-channel discussions with Iran to ensure the protection of their ships. Treasury Secretary Scott Bessent said on Monday that the US is allowing Iranian oil tankers to transit the waterway.
2026-03-17