US heating oil futures slipped below $3.80 per gallon, hovering near a three-week low, as traders factored in improved supply prospects. Sentiment was supported by news that Iran had reached an agreement with Oman on establishing a shipping route through the Strait of Hormuz, raising expectations that additional energy exports could transit the key chokepoint. Iranian officials said a joint statement was being finalized and that the route was expected to operate for two to four months, while emphasizing that the arrangement did not amount to a full reopening of the Strait. President Donald Trump also indicated that talks with Tehran were ongoing.
Nonetheless, supply concerns persisted in other regions. Russia’s diesel and gasoline exports slumped 60% in July after Ukrainian strikes disrupted refinery operations, prompting Moscow to extend its gasoline export ban through January 2027. At the same time, EIA data showed that US distillate inventories — which include diesel and heating oil — declined by 3.473 million barrels in the week ended July 31.
