Heating Oil Consolidates Near April Highs

US heating oil futures held above $4.40 per gallon, consolidating near their highest level since early April, on fading hopes of the reopening of the Strait of Hormuz. President Donald Trump unveiled a new package of measures, describing it as an unprecedented campaign targeting Iran’s economy. This came after Trump said no talks with Iran were taking place or planned, while asserting that the US naval blockade remained active and that the strait was open. Iran, however, countered that the waterway would remain closed until the US fulfilled its prior conditions. The lack of resolution heightened expectations of prolonged supply disruptions from the region. Tanker flows remained subdued, with limited vessels still passing through the strategic route as shipowners stayed cautious. Meanwhile, EIA data showed that distillate stockpiles, which include diesel and heating oil, fell by 1.53 million barrels in the week ended August 14.

US heating oil futures climbed toward $4.50 per gallon on Wednesday, extending gains to their highest level since April, as the deadlock over the Strait of Hormuz heightened concerns about prolonged supply disruptions. President Donald Trump said that no talks with Iran were taking place or planned, asserting that the US naval blockade remained active and that the strait was open after mines were cleared. Iran, however, countered that the waterway would remain closed until the US fulfilled its prior conditions. Traffic through the critical chokepoint came to a standstill over the weekend following attacks on vessels, underscoring persistent security risks to energy shipments. Meanwhile, Ukrainian strikes on Russian oil refineries have disrupted domestic fuel supplies, resulting in gasoline rationing in at least two regions and tighter controls on refined-product exports, with Russia extending its ban on petrol exports until January 2027 and diesel exports until August 2026.

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.