Crude Oil Drops as Trump Ditches 20% Hormuz Shipping Fee
Trump's surprise reversal on a Strait of Hormuz cargo fee erases oil's rally. Key technical levels now in play.
Oil caught a gut-punch today. Trump walked back his proposal to slap a 20% reimbursement fee on cargo ships leaving the Strait of Hormuz — the same idea that sent crude surging yesterday. Now that risk premium is getting stripped out fast, and traders are unwinding yesterday's gains in a hurry.
The replacement plan? The White House says it's pivoting toward securing U.S. investment commitments from trading partners. But here's the problem — nobody knows how those pledges get structured, tracked, or enforced. Until there's clarity, markets are treating this as a non-event. Less geopolitical noise means less oil premium.
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Here's where it gets interesting technically. The selloff has dragged crude down to $77.84, which lands right on the underside of a broken trendline that connected the series of lower highs from May and June. Yesterday's rally broke above that line — a legit bullish signal. Today's drop is a direct retest. Bulls need to hold this level or the breakout is toast.
Below the trendline sits a critical swing zone between $75.99 and $77.10 — old resistance that should now act as support. If sellers crack below $75.99, the breakout fails and attention shifts to the 100-hour moving average near $74.60 as the next downside target. On the upside, the June 18 high at $79.18 is the line in the sand for bulls looking to press higher.
Bottom line: this is a live trade setup. The pullback could just be a healthy retest — or the start of a flush. Watch $75.99 like a hawk. Continue reading at Forexlive.
