US heating oil prices have fallen below $3.14 per gallon, hovering near their lowest level since early March, as progress in US-Iran peace talks has raised expectations of easing energy shortages and reduced fuel price pressures. Markets responded to reports that Washington and Tehran have agreed on a roadmap toward a final deal within 60 days, and to the US Treasury’s decision to authorize, for two months, the production, delivery, and sale of Iranian oil and petroleum products.
A potential reopening of the Strait of Hormuz would represent a major turning point for global energy markets, reinstating traffic through a corridor that typically handles about one-quarter of global seaborne oil shipments. The anticipation of additional supply has already driven Brent crude prices below $79 per barrel, their lowest level since early March. At the same time, US refiners are recalibrating operations after months of disruptions, boosting jet fuel production to record levels while cutting gasoline output to capitalize on stronger margins.
