Heating oil futures tumbled more than 6% to below $3.40 per gallon on Monday, erasing a dramatic 19% surge earlier in the session, after signals of a large potential G7 strategic reserve release and reassuring comments from the White House reversed a historic rally. Prices had briefly reached their highest levels since 2022, driven by concerns that the closure of the Strait of Hormuz and production cuts by Saudi Arabia could trigger a global distillate shortage. The rally lost steam when President Donald Trump described the military campaign against Iran as nearly complete and indicated that maritime traffic was beginning to resume. Sentiment shifted further after G7 finance ministers signaled their readiness to tap emergency oil stockpiles to stabilize energy markets and contain inflationary pressures. Although local inventories remain below long-term norms, the sharp pullback in crude benchmarks and the perceived easing of geopolitical risk have prompted a swift unwinding of the war premium that has dominated the market since early March.