US heating oil futures jumped more than 4%, extending an over 11% rally in the previous session to hit their highest level since October 2023. The gains came as intensifying US–Israel military action against Iran stoked fears of a possible shutdown of the Strait of Hormuz.
In the latest developments, US officials pledged to take all necessary steps as military operations were reported to be set for further escalation. Iran, in turn, threatened a complete closure of the key waterway, with a senior military adviser declaring on state television that its forces “will target any ship attempting to pass through.”
The Strait of Hormuz, a narrow strategic chokepoint, carries roughly one-fifth of the world’s seaborne oil shipments as well as substantial volumes of natural gas. At the same time, OPEC announced on Sunday that it would resume output increases following a pause in the first quarter, though member countries’ ability to sustain exports will hinge on the continued security of transit through the Strait.
