Heating Oil Holds Near 7-Week Low

US heating oil prices fell below $3.50 per gallon, hitting a seven-week low as markets assessed evolving developments in the Middle East. President Donald Trump said a peace deal with Iran could be signed as early as the weekend and cancelled planned airstrikes following talks with Tehran. This comes despite his earlier threats to seize Kharg Island and take control of Iran’s oil and gas markets, while hostilities between the US and Iran escalated earlier in the week. The lack of concrete agreements kept energy markets fluctuating and heightened concerns over prolonged supply disruptions. The Strait of Hormuz has remained largely restricted since March, accounting for about one-fifth of global oil flows. Meanwhile, EIA data showed distillate stocks, including diesel and heating oil, rose by 0.2 million barrels in the first week of June, compared with expectations for a 0.5 million barrel draw.

Heating Oil decreased to 3.46 USD/Gal, the lowest since April 2026. Over the past 4 weeks, Heating Oil lost 16.37%, and in the last 12 months, it increased 56.68%.

US heating oil prices rose toward $3.70 per gallon, extending gains from the previous session, on fears the Iran war may drag on and prolong disruptions to energy supplies amid escalating hostilities. The US carried out strikes on several targets in Iran, with reports indicating that President Donald Trump warned of further attacks unless an interim peace deal is reached. Iran was also reported to have launched missile and drone strikes against US vessels operating in the Strait of Hormuz. These developments have raised concerns over sustained military escalation and cast doubt on a lasting peace agreement, which would extend the closure of the key waterway and halt exports of distillate products from the region. Meanwhile, government data showed distillate stocks, including diesel and heating oil, increased by 0.2 million barrels in the first week of June, compared with expectations for a 0.5 million barrel draw.