FX.co ★ Heating Oil Prices Slip

US heating oil prices fell below $3.20 per gallon, mirroring the drop in crude oil as markets focused on the prospects for US–Iran peace talks. However, mixed signals from both Washington and Tehran kept uncertainty elevated. Iran’s Deputy Foreign Minister Kazem Gharibabadi stated that Tehran would move forward with plans to jointly manage traffic in the Strait of Hormuz “if for any reason Oman is not interested in doing so,” highlighting persistent tensions over control of the vital shipping lane. Traffic through the strait slowed over the weekend after renewed clashes damaged two vessels, though tanker operators and crews have so far remained willing to continue transiting the route. At the same time, US Strategic Petroleum Reserve (SPR) inventories declined by 5.5 million barrels to 325.7 million, the lowest level since May 1983, amid ongoing releases to cushion supply shortfalls following the Iran conflict. Month to date, heating oil is on track for a 13% loss and about a 20% decline for the second quarter.