08.03.202623:25:36UTC+00Heating Oil Surges to June 2022 Highs

Heating oil futures jumped 14% to above $4 per gallon on Monday, hitting their highest level since June 2022 as the escalating conflict in the Middle East and widening supply disruptions across the region drove prices sharply higher. Major Gulf producers have been cutting output, while shipments through the strategic Strait of Hormuz are largely halted amid the war involving Iran. The conflict has now entered its second week with no clear path to resolution, and US President Donald Trump has called for Iran’s unconditional surrender, underscoring the low likelihood of near-term de-escalation and keeping supply risks elevated. While recent EIA data showed a modest increase in distillate inventories, the market is assigning a hefty supply risk premium that reflects the possibility of a full shutdown of a route that handles roughly 20 million barrels of petroleum products per day.