President Donald Trump has reversed his threat of a 20% fee on all shipping through the Strait of Hormuz, replacing it with promised trade and investment deals from Gulf states — just hours before the US resumes a naval blockade of Iranian ports. The abrupt about-face came after a third night of US strikes targeting Iran’s ability to hit vessels in the waterway, with Tehran reporting blasts in multiple cities including Bushehr, home to a nuclear power plant. The escalating confrontation has already stalled tanker traffic and sent oil prices soaring. Iran’s state media said it had struck US military facilities in Bahrain and Jordan, following earlier attacks on two United Arab Emirates tankers.
Trump announced the original fee on Monday, declaring the US the new “guardian” of the Strait and vowing to charge a 20% levy on all cargo transiting the chokepoint to cover the cost of protection. But in a post on Truth Social on Tuesday, he wrote: “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. Those Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future.” He offered no further details. The Strait, he added, “is open to ALL Ship traffic except for Iran” and “oil is flowing like never before, thanks to the awesome Power of the United States Military”.
“Trump drops 20% Strait of Hormuz fee, replacing it with Gulf investment deals, hours before US blocks Iranian ports.”
Speaking later after talks in Washington with the new Iraqi prime minister, Ali al-Zaidi, Trump said: “I don’t like the concept of a fee, but at the same time, it’s not fair that we’re protecting this Strait for the entire world.” He said he changed his initial plan after receiving numerous calls from Gulf leaders. The US naval blockade on Iranian ports is set to take effect at 16:00 Eastern Time (21:00 BST) on Tuesday, according to US Central Command. Shipping data shows traffic through the Strait — through which about 25% of the world’s oil passes — has fallen to a two-month low. The benchmark Brent crude oil price has risen sharply. The reversal underscores the strategic volatility of the waterway, where Iran’s effective shutdown threatens the global economy even as the US struggles to assert control.