Crude oil held above $78 per barrel on Tuesday, stabilizing after a more than 4% intraday gain and a 9.4% surge in the previous session. The rally followed US President Donald Trump’s decision to abandon a proposed 20% levy on cargo shipments transiting the Strait of Hormuz.
Trump scrapped the plan to charge a 20% fee on cargoes passing through the waterway under US military protection, instead signaling a shift toward investment and trade agreements with Gulf states.
Geopolitical tensions nevertheless remained high. The US conducted strikes on Iranian military targets, while Iran’s Revolutionary Guard claimed responsibility for attacks on two oil tankers moving through Hormuz without active tracking signals. In addition, the UAE’s ADNOC reported that two vessels were hit while crossing the strait, causing one fatality and several injuries.
Even as the regional security situation deteriorated, the withdrawal of the proposed transit fee helped relieve some of the upward pressure on crude prices.
