President Trump has reversed course on charging a 20 percent fee for ships passing through the Strait of Hormuz, opting instead for Gulf state investment deals.
Trump Scraps Hormuz Fee, Pivots to Gulf Investment Deals Instead
According to Politico, Trump announced the shift Tuesday on Truth Social, saying the strait will stay open to “ALL Ship traffic except for Iran,” with a full blockade limited to vessels tied to Iranian ports or cargo. The 20 percent fee announced just a day earlier will instead be replaced by trade and investment agreements with Gulf states, which Trump called “MASSIVE” and beneficial for their future.
The original proposal had drawn pushback from allies and some Republicans, including Sen. John Kennedy, who argued no one should toll international waters. Trump said Gulf leaders convinced him to swap fees for investment. Democrats like Sen. Tim Kaine warned the plan risked deeper U.S. military entanglement, while U.K. Foreign Secretary Yvette Cooper reaffirmed opposition to strait tolls.
The waterway remains a flashpoint after last week’s collapse of the U.S.-Iran ceasefire.
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