FX.co ★ Heating Oil Climbs Over 7%

US heating oil futures jumped more than 7% to around $4.50 per gallon, extending their rally to the highest level since June 2022, as attacks on key Middle Eastern energy assets intensified concerns over deeper supply disruptions. Iran struck a major LNG facility in Qatar as part of a broader campaign against energy infrastructure, in retaliation for attacks on its massive South Pars gas field. At the same time, the latest inventory report showed distillate stocks dropped by 2.5 million barrels last week, a sharper decline than expected. These supply strains are being aggravated by the effective closure of the Strait of Hormuz and export curbs imposed by major refiners in China and South Korea. Iraq’s partial restart of exports via Turkey, together with Trump’s 60-day suspension of the Jones Act, could help ease shipping bottlenecks, but any relief is likely to be limited.