President Donald Trump announced Tuesday he is abandoning a plan to impose a 20% toll on cargo transiting the Strait of Hormuz, opting instead for trade and investment deals with Gulf states. The reversal came after only one day of the proposed fee being in effect.
"Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," Trump stated on social media. He characterized the anticipated investments as "massive," although the specifics and whether they represent new commitments remain unclear.
The sudden policy shift followed a night of escalated exchanges between the United States and Iran. U.S. forces conducted strikes earlier in the day, prompting a response from Iran targeting American allies in the region.
The Strait of Hormuz, a vital chokepoint for global oil shipments, has been a focal point of regional tensions. The initial announcement of the toll by Trump had signaled a new economic pressure point on nations relying on the waterway.
