FX.co ★ Heating Oil Prices Hold Steady

US heating oil prices were steady at around $3.55 per gallon after declines in the previous session, as tensions between the US and Iran flared again. US Central Command reported that it carried out “self-defense strikes” in Tehran at President Donald Trump’s direction, in response to the downing of a US helicopter patrolling the Strait of Hormuz. These new strikes risk destabilizing an already fragile ceasefire and have cast doubt on efforts to secure a more durable peace agreement that could lead to a reopening of the strait. The critical waterway remains effectively closed under a dual blockade imposed by both sides, severely curbing exports of distillate products from the region. On the supply side, US distillate inventories—including diesel and heating oil—increased by 1.502 million barrels in the final week of May.