US heating oil prices hovered near $4.00 per gallon, close to their highest level since May 21, amid mounting concerns over fuel supplies. The increase followed renewed US military action against Iranian targets and the reimposition of a naval blockade on Iranian shipping through the Strait of Hormuz. President Donald Trump warned of additional strikes unless Tehran returns to negotiations, though he backed away from a previously floated 20% levy on shipments transiting the strait.
Supply fears were further exacerbated by disruptions to Russian energy infrastructure after continued Ukrainian attacks, prompting Moscow to consider suspending diesel exports as refinery outages and rising crude costs strained domestic fuel availability. In addition, Kazakhstan’s Caspian Pipeline Consortium reduced June exports by 7% due to maintenance at the Tengiz oilfield and weaker Russian throughput.
At the same time, forecasts for warmer-than-normal temperatures through July 28 are expected to keep power-sector fuel demand elevated, adding further support to heating oil prices.
