Trump Abandons Plan for 20% Transit Fee in the Strait of Hormuz

The news could create downward pressure on Brent crude by reducing the geopolitical risk premium. Technically, the price closed just below the 20-day moving average (85.16) and the MACD has fallen below the signal line. Although the RSI is in neutral territory at 56, momentum appears to be weakening. If the price remains persistently below the $85 level in the short term, the decline could gain momentum.

The news indicates that the transit fee increase in the Strait of Hormuz has been canceled. This development could reduce the geopolitical risk premium on oil supply, exerting downward pressure on prices. Technically, while the RSI is in neutral territory at 57, the MACD remains below the signal line, indicating weakened short-term momentum. Although the price is attempting to hold just above the 20-day SMA, the selling pressure from the news poses a risk of slipping below this level. In the short term, a bearish bias prevails, but market reaction may remain limited.

The shelving of the transit fee plan in the Strait of Hormuz reduces the geopolitical risk premium on oil prices, potentially leading to a short-term correction in energy stocks. XOM shares have risen 4.7% in the last 24 hours, with the RSI approaching overbought territory at 69.5. While the MACD remains bullish, the positive sentiment from the news may already be priced in. Therefore, profit-taking and a slight pullback can be expected in the near term.

The shelving of the transit fee plan in the Strait of Hormuz could reduce the geopolitical risk premium on oil prices. CVX stock has risen 4.3% in the last 24 hours, with its RSI entering overbought territory at 71. This increases the likelihood of a short-term correction or profit-taking. Although the MACD remains bullish, the overbought signal and the negative impact of the news suggest a potential pullback in the stock.