US heating oil prices slipped below $3.50 per gallon, hovering near a seven-week low as markets weighed shifting developments in the Middle East. President Donald Trump said a peace agreement with Iran could be signed as early as this weekend and called off planned airstrikes following talks with Tehran. This came despite his earlier threats to seize Kharg Island and assert control over Iran’s oil and gas markets, amid an escalation in tensions between the two countries earlier in the week.
The absence of a definitive agreement kept energy markets volatile and reinforced worries about prolonged supply disruptions. The Strait of Hormuz has remained largely restricted since March, even though it handles roughly one-fifth of global oil flows. At the same time, EIA data showed that distillate inventories—including diesel and heating oil—rose by 0.2 million barrels in the first week of June, defying expectations for a 0.5 million barrel drawdown.
