Trump Reverses Strait of Hormuz Toll Plan, Opts for Gulf Trade and Investment Deals
US President Donald Trump has withdrawn his proposed 20 percent levy on ships transiting the Strait of Hormuz, saying Gulf leaders persuaded him to pursue trade and investment agreements instead.
Trump announced that Saudi Arabia, the United Arab Emirates, Qatar, Bahrain and Kuwait had offered increased investment in the United States, prompting him to abandon the shipping fee. He said he now believes no country should charge vessels for using the strategic waterway.
Despite the policy change, Trump confirmed that the United States would continue its planned full blockade on ships traveling to and from Iranian ports or carrying Iranian cargo.
The original toll proposal, introduced after renewed tensions in the Gulf, had triggered concern among allies and pushed oil prices higher. The Strait of Hormuz remains one of the world's most important energy shipping routes, making any policy changes closely watched by global markets.
