Crude futures pared gains after the U.S. abandoned a proposed 20% fee on Strait of Hormuz shipments, easing supply concerns.
Crude oil futures gave up intraday highs Tuesday after President Trump canceled a plan to impose a 20% fee on vessels transiting the Strait of Hormuz. The proposal aimed to offset U.S. naval protection costs but had spooked markets over potential supply disruptions.
Prices had surged earlier amid heightened tensions, including U.S.-Iran military actions and attacks on Gulf states. Prior sessions saw volatility as a U.S. blockade on Iranian ports and shifting policy developments created uncertainty over regional oil flows.
Global diesel prices also climbed after Russia reduced exports following Ukrainian strikes, compounding supply tightness.