FX.co ★ Heating Oil Retreats

US heating oil futures slipped to about $4.40 per gallon, pulling back from their highest level since early April, as they tracked a decline in benchmark crude prices while markets await Washington’s announcement of new sanctions on Iran. Treasury Secretary Scott Bessent is expected to unveil the measures at a press conference, having warned that the US could impose what he has called the “toughest sanctions in history.” President Donald Trump has also threatened penalties on countries that continue to trade with Tehran. These US efforts to isolate Iran could heighten the risk of retaliation and trigger deeper disruptions in global energy markets. At the same time, tighter Canadian crude supplies may push refined product prices higher by restricting refinery feedstock, particularly in the US Midwest, where refiners source around 70% of their crude from Canada. Fuel supply concerns have been further aggravated by Ukrainian strikes on Russian refineries, which have disrupted production and caused shortages in several regions.