US heating oil futures extended their decline to around $4.15 per gallon, a two-week low, after reports that Iran and Oman had discussed an interim framework to restore shipping through the Strait of Hormuz. The proposal envisions a temporary maritime corridor to ease vessel traffic through this critical oil chokepoint. Subsequent negotiations are expected to address permanent transit routes, traffic management, information sharing, and maritime security arrangements.
At the same time, Washington’s latest measures to pressure Iran were less severe than anticipated, as the US refrained from imposing secondary sanctions on Iran’s trading partners. Even so, elevated diesel refining margins and low US distillate inventories underscored ongoing tightness in refined-product markets, with stockpiles running about 12–13% below the five-year average ahead of fall maintenance and the winter heating season.
