Trump Drops Plan for 20% Fee on Hormuz Shipping, Shifts to Gulf Trade Deals
President Trump reversed his threat of a 20% fee on all cargo passing through the Strait of Hormuz, announcing instead trade and investment deals with Gulf states, as the U.S. prepares to reimpose a naval blockade on Iranian ports.
US President Donald Trump has abandoned his earlier threat to impose a 20% charge on all cargo transported through the Strait of Hormuz. Initially, he said the fee would cover US military expenses for protecting the waterway. However, after receiving numerous calls from Gulf leaders, Trump announced that the fee would be replaced by trade and investment agreements with those states.
Meanwhile, the US is set to reimpose its naval blockade on Iranian ports. Central Command stated that the blockade would take effect at 4:00 PM Eastern Time on Tuesday. On Truth Social, Trump wrote that the Strait "is open to ALL Ship traffic except for Iran" and that "oil is flowing like never before, thanks to the awesome Power of the United States Military."
These developments come after recent US strikes on Iran, which triggered a sharp rise in oil prices and virtually halted tanker traffic through the Strait. Iran effectively shut down the waterway—through which about 25% of the world's oil and 20% of global LNG previously passed—following US and Israeli strikes on February 28.
The US carried out a third night of attacks to degrade Iran's ability to hit shipping in the area. Iran's state media reported explosions in multiple cities, including Bushehr, home to a nuclear power plant. Tehran claimed it had targeted US military facilities in Bahrain and Jordan after earlier hitting two UAE tankers.
In a separate development, Israeli Prime Minister Benjamin Netanyahu warned Iran that his country's retaliation would be "much more powerful" if Israel is attacked first. He said in a video message that Iran should not count on things remaining quiet if they attack Israel.
