US heating oil futures fell about 5% to $3.43 per gallon, pulling back from a three-year high, after President Donald Trump signaled plans to tackle surging energy prices in the near term. Possible steps include tapping the US Strategic Petroleum Reserve, loosening fuel-blending requirements, and permitting the Treasury to trade oil futures.
Even with the pullback, heating oil remains on track for a weekly gain of more than 30%—the largest since early 2022—amid escalating tensions in the Middle East that have almost halted shipments through the Strait of Hormuz. The US-Israeli conflict with Iran, now in its seventh day, shows no signs of easing, with Iran striking a Bahrain oil refinery using missiles and drones. Israel has carried out airstrikes on Tehran, and the US has suspended operations at its embassy in Kuwait.
Although tanker traffic through the strait has plunged by about 70%, EIA data showed a 0.4 million-barrel increase in distillate inventories, defying expectations for a 2.6 million-barrel draw.
