Heating oil futures climbed above $2.55 per gallon, supported by rising geopolitical tensions and strong fuel demand. Traders are closely watching for Tehran’s reaction after the US struck Iranian nuclear sites, raising fears of potential disruption to traffic through the Strait of Hormuz—a key conduit for global crude and natural gas. While Iran has yet to take action, its leaders have promised “everlasting consequences” as Israel continues targeting Iranian military sites.
Adding to the bullish momentum, US crude inventories fell by 11.5 million barrels in the week ended June 13, the largest draw in a year, as refiners operated near capacity to meet rising demand for diesel, marine fuel, and summer blends. Meanwhile, forecasts of an intense US heat wave are stoking expectations of record power demand, further tightening the refined fuel market.
