US President Donald Trump has withdrawn his controversial proposal to impose a 20% fee on all non‑Iranian cargo passing through the Strait of Hormuz, announcing instead that Gulf nations have agreed to make “massive” trade and investment commitments to the United States. The reversal comes barely a day after Trump unveiled the toll plan, which had triggered global debate over shipping costs, energy security and escalating tensions with Iran.
In a post on Truth Social, Trump said the strategic waterway would remain fully open to global shipping, except for vessels linked to Iran or those conducting business with Tehran. He credited the US military with securing one of the world’s busiest maritime routes and said the new economic agreements with Gulf partners made the cargo fee unnecessary.
Trump’s initial proposal — a reimbursement charge for US protection of the strait — had drawn mixed reactions from international observers. Energy analysts warned that a 20% toll could have disrupted global oil and LNG flows, given that nearly one‑fifth of the world’s energy shipments pass through Hormuz. Gulf governments reportedly expressed concern that the fee could strain regional trade and complicate relations with key partners.
Explaining the policy shift, Trump said discussions with Gulf leaders led him to abandon the toll in favour of long‑term investment deals that would “benefit American workers and strengthen strategic cooperation.” He did not disclose details of the commitments but described them as “historic in scale.”
The announcement comes amid heightened US‑Iran tensions, following Iranian attacks on commercial vessels and US retaliatory strikes on Iranian missile and air‑defence systems. The policy reversal is seen as an attempt to stabilise regional markets while maintaining pressure on Tehran.
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