Heating Oil Drops on Iran Peace Prospects

2026-03-25 01:33 By Kyrie Dichosa 1 min. read

US heating oil futures dropped 10% to around $3.8 per gallon, reversing gains from the previous sessions, as hopes of a possible Middle East ceasefire eased concerns about further supply disruptions.

President Donald Trump said the US is engaged in talks with Iran and has delivered a 15-point proposal to end the conflict, reiterating this even as Tehran denied any direct negotiations and indicated it has no intention of restoring normal shipping conditions in the Strait of Hormuz.

However, uncertainty persists as the US increases its military presence in the region and explores measures to secure key oil transit routes.

Energy markets have remained highly volatile since the conflict began, with the strait, which handles about one-fifth of global oil flows, still largely shut.

Despite the pullback, US heating oil futures are still up more than 50% so far this month.



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