FX.co ★ Heating Oil Rises 3%

US heating oil futures climbed about 3% to above $3.65 per gallon on Monday, reversing losses from recent sessions as escalating tensions between the US and Iran intensified concerns over fuel supplies. The US carried out another round of strikes on Iran on Sunday, following attacks on 140 targets a day earlier in retaliation for an IRGC strike on a container ship in the Strait of Hormuz. Iran responded by targeting US military installations in Jordan, Kuwait, Bahrain, and Oman. Tehran claimed it had closed the Strait of Hormuz until further notice, but US Central Command stated that the strategic waterway remained open to lawful shipping. The latest escalation further undermined prospects for diplomacy, after reports last week suggested that technical talks were underway. At the same time, Russia announced it would halt diesel exports and become a net importer, as repeated Ukrainian attacks and higher crude prices disrupted operations at key refineries, adding to supply-side concerns.