Heating oil futures traded above $3.80 per gallon after a two-day rally, holding near their highest level since June 2022. The move came after signals from Iran’s new Supreme Leader, Mojtaba Khamenei, that the Strait of Hormuz would remain closed. Khamenei also suggested that Iran could open additional fronts if US and Israeli strikes continue, while reports that Iran has begun laying mines in the strait have further escalated shipping risks.
At the same time, President Donald Trump adopted a defiant stance, stressing that preventing Iran from obtaining nuclear weapons and curbing its regional influence outweigh concerns about oil prices. Since the conflict began, tankers have been unable to load from the Gulf, disrupting around 20% of global oil supply. The International Energy Agency has described it as the largest disruption to global oil output on record, and recent international efforts to contain energy costs have done little to slow the price surge. Heating oil remains on track for a second straight weekly gain.
