Heating oil futures climbed back above $4.10 per gallon on Wednesday after a two-day pullback, as investors reassessed the likelihood that tensions in the Middle East will ease. President Trump signaled that the United States could withdraw its forces from Iran within two to three weeks, emphasizing that a formal agreement with Tehran is not necessary to bring the conflict to an end. However, markets remained cautious, as Trump oscillated between hinting at a near-term resolution and warning of potential military escalation.
At the same time, additional US troops were deployed to the region, while Tehran stated that no peace talks are currently underway, though it expressed willingness to end the war if its conditions are met. Heating oil prices logged a historic 40% surge in March, underscoring a broader supply squeeze driven by disruptions in the Strait of Hormuz, a key chokepoint that handles roughly one-fifth of global oil shipments and has been largely obstructed since the conflict began.
