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

US heating oil prices climbed to about $4.10 per gallon, the highest level in two months, amid mounting fears of more severe supply disruptions. The US extended its strikes on Iranian military targets for an 11th straight night, while Yemen’s Iran-backed Houthi movement threatened to attack Saudi oil tankers in the Bab el-Mandeb Strait and declared a naval blockade of Saudi Arabia. At the same time, President Donald Trump played down the likelihood of near-term negotiations with Iran and warned of broader military action.

Beyond the Middle East, supply risks also emerged in the Black Sea region, where attacks hit the Caspian Pipeline Consortium terminal, a critical route for Kazakhstan’s crude exports. Markets were further strained by tighter refined fuel supplies, as Ukrainian strikes on Russian refineries continued in the wake of Moscow’s diesel export ban. Seasonal refinery maintenance, together with years of refinery closures in the US and Europe, added another layer of upward pressure on prices.