FX.co ★ Heating Oil Rises After 3-Day Decline

US heating oil futures climbed above $4.70 per gallon, snapping a three-day losing streak, as fading diplomatic hopes in the Middle East overshadowed uncertainty surrounding potential US diesel export restrictions. President Donald Trump rejected Iran’s conditional offer to reopen the Strait of Hormuz, reducing the likelihood of a swift resumption of traffic through the crucial shipping lane, though he said he still expects negotiations to resume this week.

At the same time, Trump reiterated that he is still weighing “very seriously” a possible US ban on diesel exports to rein in elevated domestic fuel prices, even as other administration officials explore alternative measures. Energy Secretary Chris Wright said the administration is working with refiners on voluntary limits to exports, while oil industry groups have urged policymakers to suspend the federal diesel tax instead.

Looking ahead, the onset of winter is expected to increase heating demand and strain supplies further. US distillate inventories are already about 12% below the five-year average, according to EIA data, adding to upward pressure on prices.