WTI crude climbed about 4 percent on Monday to above $74 a barrel after Iran announced on Sunday that it had closed the Strait of Hormuz until further notice. The move followed another round of US strikes aimed at Iran's ability to disrupt shipping, and it puts roughly a fifth of the world's seaborne oil trade at risk.
Heating oil futures are trading near $3.50 a gallon after surging more than 10 percent to their highest level in over a month. Retail prices across the Northeast remain well above futures, with New Hampshire's statewide average around $4.71 a gallon for delivered fuel oil.
Global supply had been recovering, with the IEA reporting a 4.1 million barrel per day rebound in June as Gulf flows resumed, but inventories remain heavily depleted and will take time to rebuild. With the strait closed again, the supply risk premium is back in prices, and near-term direction hinges on how quickly shipping through the Gulf resumes.