Crude recovers from session lows as traders unwind geopolitical risk premium following U.S. policy shift on Strait of Hormuz fees.
Crude oil settled at $79.34, gaining $1.20 after President Trump abandoned plans for a 20% cargo fee on the Strait of Hormuz. The reversal eased supply concerns, prompting traders to reduce risk premiums built into prices earlier in the session.
Prices fluctuated sharply, hitting a high of $81.27 and a low of $77.84 before rebounding. The $79.18 level, previously resistance, now acts as support, reinforcing a bullish technical outlook as long as prices stay above it.
After-hours trading saw prices edge toward $79.68, reflecting continued buying interest despite the policy shift’s lingering uncertainty.