Oil Eases After Trump Drops Hormuz Transit Fee

Crude oil steadied above $78 per barrel on Tuesday after rising more than 4% earlier in the session and following a 9.4% jump the previous day, after President Donald Trump abandoned plans to impose a 20% fee on cargo passing through the Strait of Hormuz under US military protection. Trump said the expected revenue would be offset by future investments in the US. “I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump posted on social media. Meanwhile, tensions remained elevated as the US carried out strikes against Iranian military targets, while Iran’s Revolutionary Guard claimed attacks on two oil tankers transiting Hormuz without active tracking signals. The UAE’s ADNOC also reported that two vessels were hit while crossing the strait.

Crude oil climbed more than 3% to nearly $81 per barrel on Tuesday, reaching its highest level in almost a month after the collapse of the US-Iran truce reignited concerns over supply disruptions. The rally followed a 9.4% surge in the previous session as fresh attacks targeted shipping in the Strait of Hormuz. The United Arab Emirates said two of its tankers were struck while transiting the waterway, highlighting growing risks to one of the world's busiest energy routes. The attacks came after the US resumed its blockade on Iranian oil exports, launched new strikes against Iran, and proposed charging vessels protected by the US Navy. Supply concerns also intensified as Saudi Arabia intercepted missiles launched by Yemen's Houthis, while Washington backed tougher sanctions on Russian energy exports. The renewed escalation has raised fears of prolonged disruptions to global oil supplies and higher geopolitical risk premiums.

Crude Oil increased to 79.62 USD/Bbl, the highest since June 2026. Over the past 4 weeks, Crude Oil WTI lost 1.45%, and in the last 12 months, it increased 18.81%.