Heating Oil Rises to 3-Week High

US heating oil prices rose toward $3.40 per gallon, hitting a three-week high, after the US carried out new strikes against Iran in response to a series of attacks targeting vessels in the Strait of Hormuz. The US Treasury also withdrew a sanctions waiver that had allowed Tehran to export oil, reversing a key part of the interim peace agreement. The move fueled concerns over renewed energy market disruptions and challenged earlier expectations of a supply surplus driven by higher OPEC+ quotas and increased Middle Eastern output. Adding further support to heating oil prices were ongoing concerns over distillate supplies, as Ukrainian drone strikes continued to disrupt refinery operations in Russia. The latest attack targeted Russia’s largest oil refinery in Omsk, marking one of Ukraine’s longest-range strikes of the war and fueling speculation that Moscow could impose a diesel export ban to ease domestic shortages.