Heating Oil Extends Advance

Heating oil futures for delivery at the New York Harbor rose above $4.00 per gallon, extending their advance for a third consecutive session, as intensifying Middle East tensions stoked concerns over deeper energy supply disruptions in the region.

US President Donald Trump rejected Iran’s latest proposal to end the conflict, leaving the crucial Strait of Hormuz effectively shut. Meanwhile, Israeli Prime Minister Benjamin Netanyahu cautioned that the conflict with Iran was “not over,” raising fears of further military escalation. Oil and refined fuel flows through the Strait have been heavily disrupted since March, straining refineries and pushing heating oil futures to a record $4.60. In response, refineries across Europe and Asia have shifted output toward diesel and jet fuel at the expense of gasoline. Despite this, fuel shortages have forced major European airlines to cancel thousands of flights, while tighter supplies in Asia have prompted China to resume diesel exports.