US heating oil prices climbed above $4.20 per gallon, the highest level since early April, as fears of broader supply disruptions in the Middle East intensified. Iran‑backed Houthi militants claimed to have launched missiles and drones at two Saudi oil tankers, heightening the risk of a second major choke point for global oil flows in the Red Sea, on top of ongoing disruptions in the Strait of Hormuz. President Trump also warned that the US would target Iranian infrastructure if ships transiting the strait were attacked. Additional concern stemmed from attacks on the Caspian Pipeline Consortium’s terminal on the Black Sea.
At the same time, signs of improving fuel supply in Russia indicated that earlier refinery disruptions may be easing, as Ukrainian strikes appeared to shift away from large refining complexes. Elsewhere, EIA data showed that US distillate inventories—which include diesel and heating oil—rose by 1.395 million barrels in the week ended July 17.
