Crude falls after the U.S. abandons a proposed 20% reimbursement fee on ships exiting the Strait of Hormuz, reducing geopolitical risk premium.
Crude oil prices declined after President Trump withdrew a proposal for a 20% reimbursement fee on cargo ships transiting the Strait of Hormuz. The reversal eased geopolitical tensions that had driven prices higher yesterday, with traders unwinding positions as the risk premium faded.
Yesterday’s rally pushed prices above a key trendline near $77.84, signaling a potential breakout. Today’s drop tests that level, with support now eyed between $75.99 and $77.10. A sustained move below $75.99 could shift momentum back to sellers.
The administration is now focusing on securing investment pledges in the U.S., though details on enforcement remain unclear. Markets remain cautious as technical levels dictate near-term direction.