US heating oil futures traded above $4.40 per gallon, consolidating near their highest level since early April, as hopes for a swift reopening of the Strait of Hormuz faded. President Donald Trump announced a new package of measures, describing it as an unprecedented campaign against Iran’s economy. The move followed his statement that no talks with Iran were underway or planned, even as he maintained that the US naval blockade remained in place and that the strait was open.
Iran, however, insisted that the waterway would stay closed until Washington met its prior conditions, reinforcing expectations of prolonged supply disruptions from the region. Tanker traffic continued to lag, with only a limited number of vessels transiting the strategic chokepoint as shipowners remained wary. At the same time, EIA data showed that US distillate inventories—which include diesel and heating oil—declined by 1.53 million barrels in the week ended August 14.
