Trump Reverses 20% Fee on Strait of Hormuz Shipping, Replaces with Gulf Investment Deals

President Trump abruptly scrapped his plan to charge a 20% fee on cargo transiting the Strait of Hormuz, just one day after announcing it. In a Truth Social post, he said he would instead seek compensation through trade and investment deals from Gulf states, citing calls from Middle Eastern leaders. The reversal came as the U.S. resumed a naval blockade on Iranian ports, escalating regional tensions. The initial fee proposal had spiked oil prices and drew criticism from shipping experts who called it illegal. Trump later told reporters that Gulf allies offered to invest billions in the U.S. and that he does not think anyone should charge a fee for the strait.

“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.” Quote verified against source