Heating oil futures climbed more than 2% toward $3.90 per gallon on Thursday, recovering a portion of the steep losses from the previous session, as renewed geopolitical tensions in the Middle East unsettled markets. Israeli strikes on Lebanon undermined prospects for sustaining a ceasefire in the region, while Iran moved to restrict shipping through the Strait of Hormuz in protest, despite the White House insisting that the vital waterway remains open.
Iran’s Parliament speaker stated that three key clauses of a 10-point proposal had been violated ahead of talks scheduled for Friday in Pakistan, arguing that under such circumstances a bilateral ceasefire or negotiations would be unreasonable. The near-halt of traffic through the Strait of Hormuz—through which roughly one-fifth of the world’s oil supply transits—has resulted in what is being described as the largest oil supply disruption in history. Analysts also cautioned that even if transit resumes, energy supplies will not return to normal immediately.
