Heating oil futures retreat as Iran sanctions focus deepens

US heating oil futures fell to around $4.40 per gallon, retreating from their highest level since early April, tracking a decline in benchmark crude prices as markets await Washington’s announcement of new sanctions on Iran.

Treasury Secretary Scott Bessent is set to outline the measures at a press conference, warning that the US could impose what he described as the “toughest sanctions in history.” President Donald Trump has also threatened penalties on countries that continue trading with Tehran.

The US efforts to isolate Iran could increase the risk of retaliation and deeper disruptions to global energy markets.

Meanwhile, tighter Canadian crude supplies could put upward pressure on refined product prices by constraining refinery feedstock, particularly in the US Midwest, where refiners rely on Canada for around 70% of their crude.

Fuel supply concerns have also intensified after Ukrainian strikes on Russian refineries disrupted production and led to shortages in several regions.