Forex
Home›Forex›FX Futures›Crude falls after Trump drops proposed 20% Strait of H…
Crude falls after Trump drops proposed 20% Strait of Hormuz fee
The policy reversal eases part of the geopolitical risk premium priced into crude, taking prices to $77.8.
Crude oil prices are pulling lower after President Trump backed away from a proposal to impose a 20% reimbursement fee on all cargo ships exiting the Strait of Hormuz, a plan that had surprised markets and helped trigger a sharp rally earlier. Forexlive reports the administration is instead shifting toward securing United States investment commitments, though details on how pledges would be structured or enforced remain unclear.
With the fee plan shelved, the geopolitical risk premium that traders had built into crude has softened, prompting some unwind of the prior day’s gains. Forexlive notes the move is also being treated as an important technical inflection, with crude down to $77.84.
Forexlive says the decline is testing the upside breakout area created when prices moved above a broken trendline formed by lower highs from May and June. Buyers are watching whether crude can hold above that level to keep the breakout intact, while the $75.99 to $77.10 swing zone is also in focus as potential support.
On the downside, Forexlive highlights that a sustained drop below $75.99 would suggest the breakout failed and could shift near term bias back to the downside, with the next objective pointing to the rising 100 hour moving average near $74.60. Traders are also watching the June 18 high at $79.18 as nearby resistance, where a move above would strengthen the bullish case.
Latest closeWTI crude $78.04 ▲9.3%