US heating oil futures climbed to about $3.21 per gallon, advancing for a fourth straight session and hovering near their highest level since October 2023, as ongoing supply disruptions in the Middle East continued to support prices. Regional tensions remain elevated: Israeli and US strikes on Iran have prompted retaliatory attacks on energy infrastructure.
In Iraq, crude production has been cut by roughly half due to storage and export bottlenecks, raising the risk that nearly 3 million barrels per day could be taken offline if shipments are not restored. In response to the heightened regional risks, Saudi Aramco is preparing to divert some exports through the Red Sea rather than the Strait of Hormuz.
Offsetting some of the upward pressure on prices, President Donald Trump announced that the US International Development Finance Corporation will provide insurance for tankers, with naval escorts on standby to help safeguard energy and trade routes. Separately, OPEC said on Sunday that it plans to resume its output increases following a pause in the first quarter.
