US heating oil futures fell more than 6% to around $4 per gallon, erasing gains from the previous session, as renewed optimism over a potential Middle East ceasefire eased fears of further supply disruptions. President Donald Trump stated that the US is engaged in talks with Iran and has submitted a 15-point proposal aimed at ending the conflict, reiterating this claim even as Tehran denied any direct negotiations and signaled no intention of restoring normal shipping conditions in the Strait of Hormuz.
Nonetheless, uncertainty remains elevated as the US expands its military presence in the region and considers additional steps to safeguard critical oil transit routes. Energy markets have been exceptionally volatile since the conflict began, with the Strait of Hormuz—through which roughly one-fifth of global oil flows—still largely closed. Despite the latest pullback, US heating oil futures remain more than 50% higher so far this month.
