Oil Prices Slide as Trump Drops Hormuz Shipping Fee Plan

Crude oil prices fell sharply Thursday after President Donald Trump reversed course on a surprise proposal to impose a 20% reimbursement fee on all cargo ships transiting the Strait of Hormuz. The about-face, which came just one day after the idea triggered a notable rally in oil markets, stripped away the geopolitical risk premium traders had quickly priced in. The White House said it will instead pursue investment commitments to the United States, though no details on how those pledges would be structured or enforced have been provided.

The policy reversal sent crude sliding to $77.84 per barrel, a technically significant level that sits at the underside of a broken trendline connecting a series of lower highs from May and June. Yesterday's surge had briefly pushed prices above that trendline in what analysts flagged as a potential bullish breakout — making today's pullback a critical test of whether buyers can defend that newly established support.

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A key swing zone between $75.99 and $77.10, which had previously acted as resistance on the way up, is now being watched as potential support. For bears to fully reclaim the near-term narrative, they would need to force prices through both the broken trendline and this swing area. A sustained close below $75.99 would signal the breakout has failed and shift the technical bias back to the downside, with the 100-hour moving average near $74.60 emerging as the next downside target.

On the upside, bulls face resistance at the June 18 high of $79.18. Reclaiming that level would strengthen the bullish case and hand buyers greater near-term control. For now, the market is in a tug-of-war at a pivotal technical juncture, with the outcome of the current retest likely to set the tone for crude's next directional move.

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