US heating oil futures rose to $4.50 per gallon, moving back toward record highs as tensions in the Middle East escalated. The surge has put prices on track for a record monthly gain of more than 50%, fueled by severe disruptions to energy supplies following the near shutdown of the Strait of Hormuz.
In a significant recent development, Iran-aligned Houthi forces in Yemen have entered the conflict, declaring they will continue their operations until strikes on Iran and its affiliated groups come to an end. Their involvement has injected fresh uncertainty into oil markets, compounding ongoing disruptions in the Red Sea and amplifying concerns that potential threats to shipments from Yanbu could further tighten global supply.
At the same time, the deployment of additional US troops to the region has intensified fears of a possible ground escalation. Now entering its fifth week, the conflict is increasingly dimming prospects for a quick resolution.
