Heating oil futures edged above $3.70 per barrel, extending a two-day rally, as US–Iran peace talks stalled and President Trump kept the Strait of Hormuz under blockade despite extending a ceasefire with Iran. Trump said the truce would remain in place until Iran submits a “unified proposal” to end the war with the US and Israel.
The decision came after reports that Vice President JD Vance’s planned trip to Pakistan for talks with Iranian officials had been postponed. At the same time, Iranian state media reported that Tehran had informed US officials, via a Pakistani intermediary, that it would not participate in further negotiations.
Since the conflict with Iran began in late February, crude and refined product flows from the Persian Gulf have fallen by about 13 million barrels per day, according to the IEA. Major oil traders, however, caution that the resulting demand destruction is likely to deepen.
Separately, forecasts for warmer-than-normal temperatures through April 30 could further pressure heating and cooling demand.