Heating Oil Futures Rise

Heating oil futures rose over 2% to around $4.40 per gallon on Tuesday, near their highest level since June 2022, as markets weighed President Trump’s deadline for Iran against ceasefire prospects. Trump reiterated that he would target Iran’s energy and transport infrastructure within 24 hours if the Strait of Hormuz is not reopened. Meanwhile, a proposed 45-day ceasefire, floated by mediators in US-Iran talks, emerged as a last-ditch effort to ease tensions. Iran rejected the temporary truce, instead pushing for a permanent resolution and submitting separate conditions via mediators. Trump later also dismissed the proposal as “not good enough,” though he called it a significant step. Elsewhere, OPEC+ agreed to raise output by 206,000 bpd in May, though the closure of Strait routes and damaged infrastructure may limit how much supply reaches global markets.

Heating oil futures pared earlier gains to around $4.40 per gallon on Monday, as traders weighed reports of renewed ceasefire efforts in the Middle East against a fresh ultimatum from President Donald Trump on Iran. Reports indicated that the US, Iran, and regional mediators were negotiating a potential 45-day ceasefire, although the chances of even a partial deal within the next 48 hours remained low. At the same time, Iran said Iraq would be exempt from Strait curbs, potentially boosting oil flows, while SOMO confirmed that Iraqi shipments are unrestricted and can be loaded. Meanwhile, President Trump warned on social media that Iran would face severe consequences if it fails to reopen the passage by Tuesday, including possible strikes on key infrastructure such as power plants and bridges. Elsewhere, OPEC+ agreed to raise output by 206,000 bpd in May, though closed Strait routes and damaged infrastructure may limit how much supply reaches global markets.

Heating oil futures climbed more than 2% to above $4.40 per gallon on Monday, extending gains from the previous session, after President Trump renewed pressure on Tehran over the Strait of Hormuz. He warned on social media that Iran would face severe consequences if it fails to reopen the passage, including potential strikes on key infrastructure such as power plants and bridges. This follows his national address last week, in which he said the conflict could continue for two to three weeks. Meanwhile, the eight OPEC+ members agreed to raise production by 206,000 barrels per day in May, though it remains uncertain how the additional oil will reach global markets as the Strait remains closed. OPEC+ also cautioned that repairing energy infrastructure damaged by Iranian attacks is costly and time-consuming, likely continuing to limit overall supply.