U.S heating oil futures climbed $4.50 per gallon, moving back toward its record level, as tensions in the Middle East intensified. The rally has put prices on course for a record monthly increase of more than 50%, driven by major disruptions to energy supply following the near shutdown of the Strait of Hormuz. In recent developments, Iran-aligned Houthi forces in Yemen have entered the conflict, stating they will continue operations until strikes on Iran and its affiliated groups cease. Their involvement raises fresh concerns for oil markets, with ongoing Red Sea disruptions and potential risks to shipments from Yanbu threatening to further squeeze supply. At the same time, the deployment of additional US troops to the region has heightened worries about a possible ground escalation. The conflict has now stretched into its fifth week, reducing hopes for a swift resolution.
