US heating oil futures fell toward $4.00 per gallon in early August, extending losses for a third consecutive session, after President Donald Trump called off a planned military strike on Iran. Trump said Saudi Arabia and other key Middle Eastern allies had urged him to halt the operation and return to negotiations, while continuing to push for the rapid reopening of the Strait of Hormuz. The decision eased some of the anxiety that had built up over several days of escalating tensions, reducing fears of potential supply disruptions.
At the same time, Gulf producers pressed ahead with efforts to diversify export routes. Turkey and Iraq extended an existing pipeline agreement, while Iran reported that talks with Oman over establishing a new route through the strait were nearing completion. Separately, Russian diesel supplies remained tight as Ukrainian attacks on major oil refineries continued, prompting Moscow to prolong its diesel and gasoline export ban through January 2027.
