Heating Oil Prices Drop

US heating oil futures fell below $4.30 per gallon, pausing their recent rally that pushed prices to record highs, as investors assessed signals that the US could lift sanctions on Iranian oil at sea to ease price pressures. Treasury Secretary Scott Bessent said the move could release roughly 140 million barrels of Iranian oil, potentially stabilizing prices over the next 10–14 days. At the same time, President Donald Trump confirmed the US has no plans to send ground troops, while Benjamin Netanyahu indicated Israel would pause further strikes on Iranian energy facilities, easing fears of escalating damage and deeper supply disruptions. Still, heating oil remained up over 8% this week and more than 60% this month amid supply strains tied to the effective shutdown of the Strait of Hormuz and export curbs by major Asian refiners.

US heating oil futures surged over 6% to record levels near $4.5 per gallon, as strikes on key Middle Eastern energy sites stoked fears of deeper supply disruptions. Iran targeted a major LNG facility in Qatar, part of a broader campaign against energy infrastructure in retaliation for attacks on its massive South Pars gas field. Meanwhile, the latest inventory report revealed that distillate stocks dropped sharply by 2.5 million barrels last week, surpassing expectations and highlighting ongoing supply pressures. These strains are further intensified by the effective shutdown of the Strait of Hormuz and export restrictions imposed by major Chinese and South Korean refiners. To ease supply bottlenecks, the US is temporarily waiving the Jones Act for 60 days and tapping 172 million barrels from strategic reserves as part of a coordinated global effort.

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.