Heating Oil Costs Soar as Iran War Drives Up Global Energy Prices

Americans who rely on heating oil to warm their homes will face a significant increase in utility costs this winter, according to a new forecast. The National Energy Assistance Directors Association (NEADA) estimates that households using heating oil will pay an average of nearly $2,300 for the four-month period between mid-November and mid-March 2027 - up more than 30% from last year.

The surge in heating oil costs is attributed to the Iran war driving up global energy prices. Mark Wolfe, an energy economist and executive director of NEADA, noted that Ukrainian strikes on Russian oil infrastructure are also depleting global oil supplies and contributing to rising energy prices.

Nearly all of the heating oil used in American homes comes from crude oil, which is refined into various petroleum products. Brent crude, the international standard, traded at roughly $106 a barrel on Tuesday - up over 30% since the war erupted in late February.