Heating oil futures slid 2.5% to around $3.83 per gallon on Friday, as the outlook for a more robust ceasefire agreement in the Middle East improved. US President Trump struck a cautiously optimistic tone ahead of this weekend’s meetings between US and Iranian delegations, while Israel moved closer to truces in both Lebanon and Gaza. These developments eased fears of supply disruptions, particularly along critical routes such as the Strait of Hormuz, leading traders to further unwind the risk premium that had been priced in earlier in the week. Despite the daily pullback, heating oil prices remain roughly 50% higher than in early March, underpinned by structurally tight refining capacity. At the same time, ongoing geopolitical uncertainty continues to fuel volatility in the market.