Heating Oil Extends Gains

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.