President Trump announced Tuesday he is backing away from a proposed 20% toll on ships transiting the Strait of Hormuz, opting instead for investment deals with Persian Gulf states. The shift came after what Trump described as "highly productive conversations with Middle East Leadership."
In a post on Truth Social, Trump stated that the anticipated investment deals would be "MASSIVE but, at the same time, extraordinarily good for them, and their future."
Trump had initially announced the tolling scheme on Monday, positioning the U.S. as the "guardian" of the Strait of Hormuz and proposing a reimbursement fee equivalent to 20% of a cargo's value. At the time, an industry expert estimated this fee could generate nearly $200 billion annually.
The former president also asserted that oil exports are "flowing like never before" due to recent U.S. airstrikes on Iran. He further claimed the Strait of Hormuz remains open to all ship traffic except for Iran, attributing this to Iran's "lying, violent, malicious leadership, which is taking them down the path of TOTAL DESTRUCTION."
Trump further specified that a "FULL Blockade" would be implemented, but exclusively targeting ships coming to and from Iranian ports or carrying Iranian cargo. The latest announcement marks a significant adjustment to this stance, emphasizing economic agreements over a direct toll.