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2026.08.0401:28:30UTC+00Heating Oil Holds Losses

US heating oil futures fell below $3.90 per gallon in early August, extending recent losses as traders evaluated developments in the Strait of Hormuz. President Donald Trump described his latest offer of talks as Tehran’s “last chance” and voiced confidence that the vital shipping lane would fully reopen. Iran, while denying it was engaged in direct negotiations with Washington, said its discussions with Oman on expanding traffic through the strait were progressing. At the same time, Gulf producers continued to develop alternative export routes: Turkey and Iraq extended a key pipeline agreement, and Kazakhstan resumed crude deliveries via the Caspian Pipeline Consortium after a temporary halt. Separately, Russian diesel supplies remained tight due to ongoing Ukrainian attacks on major oil refineries, prompting Moscow to prolong its diesel and gasoline export ban through January 2027.

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