FX.co ★ Heating Oil Tumbles 17%

Heating oil futures plunged more than 17% to below $3.70 per gallon on Wednesday, reaching a four-week low, after Iran agreed to temporarily reopen the Strait of Hormuz under a two-week ceasefire with the US and Israel. Iranian Foreign Minister Abbas Araghchi said safe passage through the strait would be coordinated with the country’s armed forces, taking technical constraints into account. Earlier, President Donald Trump stated that the ceasefire was contingent on Iran reopening the waterway, a prerequisite for finalizing an agreement. Israel has reportedly also agreed to halt airstrikes while negotiations proceed, with the first round of US–Iran talks scheduled to take place in Islamabad on Friday. The announcement came less than two hours before Trump’s deadline for Iran to reopen the strategic waterway or face military strikes on its power plants and bridges.