FX.co ★ Heating Oil Rises to 3-Week High

US heating oil prices climbed toward $3.40 per gallon, reaching a three-week high, after Washington launched new strikes against Iran in response to a series of attacks on vessels in the Strait of Hormuz. At the same time, the US Treasury revoked a sanctions waiver that had allowed Tehran to export oil, rolling back a key element of the interim peace agreement.

These developments heightened fears of renewed disruptions in global energy markets and undermined earlier expectations of a supply surplus driven by higher OPEC+ production quotas and increased output from the Middle East.

Prices also found support from persistent concerns over distillate supplies, as Ukrainian drone attacks continued to hamper refinery operations in Russia. The latest strike hit Russia’s largest oil refinery in Omsk, one of the longest-range operations carried out by Ukraine during the conflict, and intensified speculation that Moscow could impose a diesel export ban to alleviate domestic shortages.