Energy stocks were lower Tuesday afternoon, with the NYSE Energy Sector Index easing 0.1% and the State Street Energy Select Sector SPDR ETF (XLE) shedding 0.3%.

The Philadelphia Oil Service Sector Index was shedding 0.3%, and the Dow Jones US Utilities Index decreased 0.2%.

President Donald Trump withdrew his proposal to charge a 20% toll on cargo transiting the Strait, according to his social media post on Tuesday. "Based on highly productive conversations with Middle East leadership, 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." There will be a "FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," Trump said on Truth Social.

Front-month West Texas Intermediate crude oil rose 1.2% to $79.08 a barrel, and the global benchmark Brent crude contract gained 1.7% to $84.69 a barrel. Henry Hub natural gas futures was slightly higher at $2.90 per 1 million BTU.

In corporate news, Shell (SHEL) will receive a production-linked tax credit from Nigeria for its Bonga Southwest Aparo deepwater project, Bloomberg reported. Shell shares were up 0.4%.