Trump pivots from 20 percent Strait of Hormuz fee amid Iran war escalation
US President Donald Trump has reversed his decision to levy a 20 percent transit fee for vessels passing through the Strait of Hormuz, a day after announcing it. Instead, he stated that Gulf States would make "massive" trade and investment deals with the United States in exchange for transit protection. This pivot comes amid escalating conflict between the US and Iran.
Why it matters
This policy reversal impacts international shipping, energy markets, and US foreign relations in the Middle East, potentially de-escalating a contentious economic measure while shifting the financial burden to Gulf allies. It also highlights the fluid nature of US foreign policy announcements.
Trump backs away from fee, says regional countries will instead invest in US in return for transit protection.
x whatsapp-stroke copylink google Add Al Jazeera on Google info US President Donald Trump speaks during a meeting with Prime Minister of Iraq Ali al-Zaidi in the Oval Office of the White House in Washington, DC, the United States [Saul Loeb/AFP] By Al Jazeera Staff Published On 14 Jul 2026 14 Jul 2026 United States President Donald Trump has backed away from his claim that Washington would levy a 20 percent transit fee for vessels passing through the Strait of Hormuz.
The reversal on Tuesday came just a day after Trump announced the 20 percent fee as fighting between the US and Iran continued to escalate.
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