2026.03.0501:59:03UTC+00Heating Oil Climbs to 2½-Year High

US heating oil futures surged more than 5% to about $3.45 per gallon, their highest level since September 2023, amid mounting concerns over prolonged supply disruptions stemming from the conflict in the Middle East. Analysts pointed to the prospect of a US military campaign lasting at least a month, Tehran’s attempts to widen the confrontation, and the effective shutdown of the strategically critical Strait of Hormuz.

Some of the upward pressure on prices was tempered by policy responses. President Donald Trump proposed providing risk insurance and naval escorts for commercial vessels operating in the Gulf, while Treasury Secretary Scott Bessent detailed additional measures aimed at stabilizing global energy markets.

Even as tanker traffic through the Strait of Hormuz has dropped by about 70%, fresh data from the EIA indicated an unexpected 0.4 million-barrel increase in US distillate inventories last week, in contrast to market expectations for a 2.6 million-barrel draw. US crude oil inventories also rose sharply, climbing 3.5 million barrels to 439.3 million, far exceeding forecasts and offering an important buffer against potential energy supply shocks.