FX.co ★ Heating Oil Hovers at 2-Month High

US heating oil traded around $4.07 per gallon on Monday, after briefly touching $4.20 earlier in the session, holding near a two-month high as investors weighed geopolitical risks against tentative signs of renewed diplomacy in the Middle East. Iran’s Foreign Ministry said it had received proposals from international mediators aimed at easing tensions with the US, helping to pare earlier gains. Nonetheless, markets remained focused on the risk of supply disruptions following fresh military exchanges between Washington and Tehran, including attacks on vessels transiting the Strait of Hormuz and a weekend strike on an oil facility in Kuwait. Supply fears were also reinforced by ongoing Ukrainian attacks on Russian refineries in the wake of Moscow’s diesel export ban. Seasonal refinery maintenance, coupled with years of refinery closures in the US and Europe, has further tightened fuel markets.