US President Donald Trump on Tuesday reversed his decision to impose a planned fee on vessels passing through the Strait of Hormuz, just a day after announcing the measure, saying it would be replaced by trade and investment agreements with Gulf nations.
The reversal follows renewed tensions with Iran over the strategic waterway. Trump said the decision came after what he described as “highly productive conversations with Middle East leadership.”
In a post on his Truth Social platform, he announced that the proposed 20% “United States Reimbursement Fee” would no longer be implemented. Instead, he said Gulf states would strengthen economic ties with Washington through new trade and investment commitments.
Despite dropping the transit levy, Trump said the United States would maintain a “full blockade” targeting vessels linked to Iran. He clarified that the measure would apply only to ships travelling to or from Iranian ports or transporting Iranian cargo.
On Monday, Trump had declared that the United States was now the “guardian” of the Strait of Hormuz and announced the fee, arguing that it would compensate Washington for safeguarding one of the world’s most important oil and gas shipping routes.
Iran, however, rejected the US stance. Its military leadership said it would not permit American interference in the strategic waterway and warned neighbouring Gulf countries against cooperating with Washington, amid fears of further regional escalation.
