USD/CAD and Oil React as Trump Removes 20% Hormuz Toll

President Trump announced the removal of the 20% toll on vessels transiting the Strait of Hormuz, declaring that 'oil is flowing like never before' thanks to US military presence in the region. The move has significant implications for crude oil supply dynamics and, by extension, commodity-linked forex pairs such as USD/CAD. The removal of the transit toll is expected to lower shipping costs and ease supply constraints, potentially putting downward pressure on oil prices over the medium term — a factor that could weaken the Canadian dollar given Canada's status as a major oil exporter. Trump credited Secretary of War Pete Hegseth and CENTCOM Commander Admiral Brad Cooper for the military operations supporting the initiative. For forex traders, the geopolitical development reduces a key risk premium in energy markets. Near-term, USD/CAD may see upward pressure if oil prices soften on improved supply flow expectations. Traders should monitor crude oil price reactions closely for directional cues on CAD pairs.