Trump Cancels Plan for 20% Fee in Strait of Hormuz

President Donald Trump has cancelled a plan to impose a 20% fee on all cargo shipments through the Strait of Hormuz, stating the tariff would be replaced by a ‘massive’ trade and investment agreement with Gulf countries. The reversal, reported by the BBC on Wednesday, follows the latest exchange of attacks between the United States and Iran, which triggered a surge in global oil prices and brought shipping traffic in the strait to a halt. ‘I have decided to replace the 20% United States Reimbursement Fee with a Trade and Investment Deal to be undertaken by various Gulf Nations into the United States,’ Trump said on his social media platform, Truth Social. He added that the investments would be ‘very large, but at the same time, very good for them and their future,’ without providing further details. Trump also asserted that the strategic waterway is now ‘open to all shipping traffic, except Iran,’ and claimed that ‘oil is flowing like never before, thanks to the incredible might of the United States military.’ In response, Iran stated it would maintain its control over the Strait of Hormuz. Deputy Foreign Minister Kazem Gharibabadi said Trump’s unilateral blockade decision had effectively dismantled a previously agreed ceasefire deal. Meanwhile, US Central Command announced its forces had launched additional strikes against Iran to further degrade capabilities used to target commercial vessels in the key waterway, while Iranian state media reported explosions in several cities, including Bushehr, the site of a nuclear power plant.