US heating oil prices climbed to about $4.20 per gallon, approaching their three-month high, as renewed hostilities between Iran and the United States reignited concerns over potential disruptions to energy supplies. Iran fired ballistic missiles at US forces in the Middle East, marking an escalation after a lull in fighting, although US Central Command reported that all missiles were intercepted. In parallel, the US military, acting with Saudi forces in Iraq, launched strikes on Iran-backed militant groups in retaliation for drone attacks directed by Tehran.
Tensions also rose in the Strait of Hormuz, where Iran rejected Oman’s proposal to share control of shipping lanes, insisting that the inbound route and part of the outbound route remain under its authority. Beyond the Middle East, Russia’s fuel crisis has begun to ease as refineries return to operation, but the ongoing ban on diesel exports continues to strain an already tight global diesel market. Meanwhile, industry data indicated that US distillate inventories declined by 125,000 barrels in the week ending July 24.
