Heating Oil Hits 18-week High

US heating oil futures rose to around $4.45 per gallon on Tuesday, reaching their highest level since early April, as fading hopes for a near-term resolution to the US-Iran conflict heightened expectations of prolonged supply disruptions from the region. President Donald Trump said he was not interested in extending an agreement with Tehran that technically expired on Monday, while disagreements over the Strait of Hormuz continue to complicate negotiations. Iran is holding separate talks with Oman on managing the waterway, with Trump threatening to bomb Oman if it interferes with a US blockade. Still, continued crude shipments through the Persian Gulf waterway have eased some supply concerns. Elsewhere, frequent Ukrainian strikes on Russian oil refineries have disrupted fuel supplies, prompting gasoline rationing in at least two regions and restrictions on refined-product exports. Russia has since extended its existing diesel export ban until January 2027.

Heating Oil increased to 4.38 USD/Gal, the highest since April 2026. Over the past 4 weeks, Heating Oil gained 6.18%, and in the last 12 months, it increased 95.21%.

US heating oil futures traded near $4.30 per gallon, hovering close to a four-month high, as shipping through the Strait of Hormuz slowed while talks between the US and Iran remained at a standstill. No peace deal between the US and Iran appears in sight, as President Trump signaled plans to intensify economic pressure on Iran, while Treasury Secretary Scott Bessent said new sanctions could be announced this week. Meanwhile, more vessels were attacked in the key passageway late last week. Still, Middle Eastern oil producers continue to move substantial volumes of crude through the Persian Gulf despite the incidents. Elsewhere, frequent Ukrainian strikes on Russian oil refineries have disrupted fuel supplies, prompting gasoline rationing in at least two regions and restrictions on refined-product exports. Russia has since extended its existing diesel export ban until January 2027, maintaining restrictions on supplies of the middle distillate used in heating oil.