US heating oil prices climbed above $3.20 per gallon, tracking gains across the broader energy complex, as markets remained on edge over Middle East supply risks following the recent exchange of strikes between the United States and Iran.
According to a US official speaking on condition of anonymity, both sides have agreed, for now, to halt further attacks and to permit commercial vessels to transit the Strait of Hormuz freely ahead of peace talks scheduled for later this week. Even so, market sentiment stayed cautious. The latest flare-up has disrupted the nascent recovery in oil shipments through the Strait that had begun after a previous interim agreement, and shipowners remain reluctant to use the key chokepoint, leaving hundreds of vessels stranded in the Persian Gulf.
Geopolitical risk was further heightened as Israel reported fresh strikes on Iran-backed Hezbollah infrastructure in southern Lebanon. At the same time, Saudi Aramco resumed crude loadings at Ras Tanura after an almost four-month suspension, adding a countervailing element to the regional supply picture.
