Trump Drops Plan for 20% Fee on Hormuz Strait, Replaces with Trade Deals
US President Donald Trump has abandoned his proposal to impose a 20% fee on vessels crossing the Strait of Hormuz, replacing it with trade and investment agreements with Persian Gulf states. Meanwhile, the US has reinstated a blockade of Iranian ports.
US President Donald Trump announced he is abandoning the planned 20% compensation fee for crossing the Strait of Hormuz, following productive talks with Middle Eastern governments. The fee will be replaced by trade and investment agreements that various Persian Gulf states will sign with the United States.
Trump had previously stated that the US would become the "guardians of the strait" and should be compensated for protecting this strategically vital waterway. He noted that the US had been guarding the strait for free until now, but wealthy countries would reimburse the expenses. He then announced the reinstatement of a blockade against Iran, meaning Iranian ships and their clients would be barred from entering or leaving, while other nations would be ensured fair and free use of the strait.
Initially, Trump declared that the US would be called the "Protector of the Strait of Hormuz" and, in the interest of fairness, would receive 20% of the value of all cargo transported through the strait to cover security costs. However, after talks, this idea was replaced by trade agreements.
The US Central Command stated that US forces would resume the blockade of Iranian ports on Tuesday at 23:00 Latvian time. The US and Iran resumed hostilities last week, effectively breaking the ceasefire agreed in April, with fighting primarily concentrated around the Strait of Hormuz.
