US heating oil futures hovered near $4.30 per gallon, close to a four-month high, as shipping through the Strait of Hormuz slowed and negotiations between Washington and Tehran remained stalled. A peace agreement between the US and Iran appears unlikely in the near term: President Trump has signaled plans to intensify economic pressure on Iran, while Treasury Secretary Scott Bessent indicated that new sanctions could be announced this week.
At the same time, additional vessels were attacked in the strategic waterway late last week. Even so, Middle Eastern oil producers are still moving substantial volumes of crude through the Persian Gulf despite the security incidents.
Elsewhere, repeated Ukrainian strikes on Russian oil refineries have disrupted fuel supplies, leading to gasoline rationing in at least two regions and prompting curbs on refined-product exports. In response, Russia has extended its existing diesel export ban until January 2027, preserving restrictions on supplies of the middle distillate used in heating oil.
