US President Donald Trump has backed away from a proposed 20 percent toll on shipping through the Strait of Hormuz and instead signaled that he will pursue trade and investment deals with Gulf states. The change came within about 24 hours of his earlier announcement, reflecting a quick reversal on how the US would respond to maritime security in the strategic waterway.
Trump said the new approach follows “highly productive conversations” with Middle East leaders and would replace the fee with “massive” investments from Gulf countries into the United States. He indicated that the US would still keep pressure on Iranian shipping while allowing international traffic to continue moving through the strait.
Gulf Investment Over Transit Fee
The proposed fee had drawn swift criticism because the Strait of Hormuz is an international shipping lane and many experts argued that no single country can legally impose tolls there. Trump’s revised stance shifts the focus from collecting transit charges to seeking economic commitments from Gulf partners such as Saudi Arabia, the UAE, Qatar, Kuwait and Bahrain. Reports said the White House move was linked to fresh discussions with regional leaders amid tensions in West Asia.
Oil markets reacted only mildly after the reversal, with prices staying largely flat after an early jump. The episode adds another layer of uncertainty to shipping and energy trade in one of the world’s most important maritime chokepoints.
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