2026.06.2409:52:57UTC+00Heating Oil Falls to 3-1/2-Month Low as Supply Fears Ease

US heating oil prices have dropped below $3.20 per gallon, the lowest level since early March and more than 30% below the record high of $4.608 reached on March 20. The decline closely tracks the sharp pullback in crude oil prices, driven by increased tanker traffic through the Strait of Hormuz, temporary relief from Iranian sanctions, and progress in US-Iran peace negotiations. In an effort to curb energy costs, the White House has waived the Jones Act and drawn on the Strategic Petroleum Reserve. Even so, market conditions remain tight: the US continues to function as the global supplier of last resort, pushing domestic diesel inventories to unusually low seasonal levels. Prices also remain above the pre-war benchmark of $2.596 per gallon, and any future Russian export bans could reignite upward pressure. At the same time, President Donald Trump has directed the Department of Justice to investigate gasoline prices, arguing that they are not declining quickly enough.