Heating oil futures approached $4 per gallon on Friday, extending the prior session’s gains as markets refocused on the upcoming US–Iran talks scheduled for this weekend amid a fragile ceasefire. Israeli strikes in Lebanon prompted Iran to again claim closure of the Strait of Hormuz, complicating diplomatic efforts, although the White House denied that the key shipping lane is shut.
Israeli Prime Minister Benjamin Netanyahu insisted that operations in Lebanon fall outside the scope of the US–Iran truce, while Washington has arranged talks next week with Israel and Lebanon to advance broader ceasefire negotiations. At the same time, President Donald Trump warned Tehran against imposing transit fees on vessels passing through the Strait and criticized Iran for what he called a “poor job” in ensuring the flow of energy supplies.
Despite the ongoing tensions, the ceasefire announcement earlier this week initially triggered a sharp selloff across energy markets, leaving heating oil on track for a weekly loss of more than 11%.
