Heating oil futures held above $3.80 per gallon after a two-day rally, remaining near their highest level since June 2022, following signals from Iran’s new Supreme Leader Mojtaba Khamenei that the Strait of Hormuz would stay closed. Khamenei also hinted at opening additional fronts if US and Israeli attacks continue, while reports indicate Iran has begun laying mines in the passage, further raising shipping risks. Simultaneously, President Donald Trump also struck a defiant tone, emphasizing that preventing Iran from acquiring nuclear weapons and limiting its regional threats takes precedence over concerns about oil prices. Since the conflict began, tankers have been unable to load from the Gulf, disrupting roughly 20% of global oil supply. The IEA called it the largest disruption to global oil output on record, and the recent international efforts to curb energy costs have done little to slow the rally. Heating oil is on track for a second consecutive weekly gain.
