US heating oil futures slipped below $4.10 per gallon in late July, retreating from a near four-month high as traders balanced signs of improving shipping activity against persistent geopolitical risks. Recent days have seen an apparent pickup in Middle East oil flows, with more vessels exiting the Persian Gulf without detection and two Saudi tankers successfully passing through the Bab el-Mandeb Strait.
In a separate development, Saudi Arabia proposed creating an international maritime coalition to secure critical shipping lanes, drawing representatives from 43 countries for talks on protecting navigation in the Red Sea after Iran-backed Houthi forces declared a blockade against the kingdom.
At the same time, Russian diesel exports remained tight following recent Ukrainian attacks on Russian refineries, leading Moscow to suspend all diesel exports for July. Despite the latest pullback, heating oil futures were still poised for an approximately 27% monthly gain, supported by heightened geopolitical tensions earlier in the month amid reciprocal strikes between the United States and Iran.
