Heating Oil Holds Near 3-Month Low

US heating oil prices traded around $3.20 per gallon, hovering close to their lowest level since March 11, as the US-Iran deal is expected to reopen the Strait of Hormuz and facilitate a return of Middle Eastern energy exports. Under the interim pact, which is scheduled to be signed later this week, Tehran would receive broad financial incentives, including the immediate right to sell its oil. Still, markets are assessing the durability of the agreement and the timeline for shipping through the Strait to normalize, as many operators may wait several weeks before resuming tanker transits. Producers have also cautioned that a full recovery could take months, citing technical and geological constraints as well as infrastructure damage. Meanwhile, industry data showed that distillate stockpiles, including diesel and heating oil, fell by 461,000 barrels in mid-June after rising by 1.3 million barrels in the previous week.