Trump scraps threat of 20% fee on Hormuz cargo as US prepares to resume blockade of Iran ports
President Trump has rescinded his threat to impose a 20% fee on cargo passing through the Strait of Hormuz, opting instead to pursue trade and investment deals with Gulf states. This shift occurs as the U.S. prepares to enforce a naval blockade on Iranian ports following recent military escalations in the region.
Why it matters
The decision highlights a pivot in U.S. foreign policy from direct taxation to economic leverage, while the ongoing military tensions threaten global oil supply chains.
Image source, Reuters Image caption, Shipping data shows traffic through the Strait has slowed dramatically
President Donald Trump has reversed his threat of a 20% fee on all Strait of Hormuz cargo shipping, as the US battles to break Iran's hold on the waterway.
He said the toll would be replaced by trade and investment deals with Gulf states, just hours before the US resumes a blockade of Iranian ports.
It follows renewed strikes between the US and Iran, which triggered a sharp rise in oil prices as tanker traffic through the Strait has virtually stalled.
The US earlier said it had carried out a third night of attacks to degrade Iran's ability to hit the shipping in the area, and on Tuesday Iran's state media reported blasts in multiple cities, including Bushehr - home to a nuclear power plant.
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