Markets weighed Donald Trump's comments on Iran, progress in Oman talks and rerouted regional oil flows, while Russian diesel exports stayed restricted through January 2027.
US heating oil futures traded below $3.9 per gallon in early August, extending recent losses as traders reassessed supply risks tied to the Strait of Hormuz, a critical chokepoint for global oil shipments. President Donald Trump said his latest offer of talks was Tehran's "last chance" and said he was confident the waterway would fully reopen. Iran denied holding direct talks with the US, but said discussions with Oman to increase shipping through the strait were making progress. At the same time, Gulf producers continued developing alternative export routes, with Turkey and Iraq extending a pipeline agreement and Kazakhstan resuming crude shipments through the Caspian Pipeline Consortium after a temporary disruption. Russian diesel supplies also remained tight after ongoing Ukrainian attacks on major oil refineries, leading Moscow to extend its diesel and gasoline export ban through January 2027.