Heating oil futures extended their advance by more than 6% to around $3.9 per gallon, reaching their highest level since November 2022, as markets remained focused on severe supply disruptions caused by the Iran war. Iran has told regional mediators it will only consider a ceasefire if the US guarantees that neither Washington nor Israel will strike it again, a condition the US is unlikely to accept, dimming prospects for a near-term resolution. The critical Strait of Hormuz remained effectively closed, forcing major Gulf producers to sharply cut output. Gulf producers have already reduced output by roughly 6%, and deeper cuts from the Middle East remain possible. In response to the supply disruption, the IEA launched a coordinated release of 400 million barrels from emergency reserves, the largest drawdown on record, including 172 million barrels from the US and 80 million barrels from Japan, though the move failed to reassure traders.
