Heating oil futures slipped below $4.10 per gallon, paring back a historic monthly rally that had driven prices to nearly $4.70, as new diplomatic signals from Tehran eased the most immediate supply concerns. The retreat followed comments from Iranian President Masoud Pezeshkian, who expressed conditional willingness to halt regional hostilities if Western powers provide credible guarantees against future aggression.
This softer tone aligns with recent efforts by President Trump to de-escalate tensions and normalize tanker traffic through the Strait of Hormuz, where disruptions have constrained roughly 20% of global oil flows throughout March. Although the prospect of renewed supply has weighed on energy benchmarks, the limited scope of the pullback underscores persistent market skepticism, driven by extensive damage to regional energy infrastructure and the continued deployment of US forces to the Middle East.
Even with the latest decline, heating oil is still on course to post a record monthly gain of more than 40%.