Trump steps back from Hormuz fee plan; new strikes hit Iran
President Donald Trump has abandoned a proposed 20% transit fee for the Strait of Hormuz, opting instead to pursue trade and investment deals with Gulf states. Meanwhile, military tensions remain high as Iran reports US strikes on its territory following Iranian attacks on US-allied bases.
Why it matters
The Strait of Hormuz is a critical global shipping lane, and escalating military conflict there poses significant risks to global energy markets and international security.
Flight operations aboard the USS George H.W. Bush, at an unknown location, released July 14, 2026, in this still image taken from a handout video. — Reuters Listen to article 1x 1.2x 1.5x comments Join our Whatsapp Channel Add Dawn as a trusted source US President Donald Trump stepped back from a proposal to charge a 20 per cent transit fee to guard the vital Strait of Hormuz waterway as part of the conflict with Iran, saying on Tuesday he would instead seek investment deals with Gulf states.
US forces had carried out waves of attacks for the third night in a row after Tehran said it had closed the strait, prompting Trump on Monday to reinstate a blockade of Iranian shipping and propose the fee.
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