US President Donald Trump has abandoned a proposal to impose a 20% toll on all cargo vessels transiting the Strait of Hormuz.
The decision marks a sharp reversal from plans announced just days earlier, which had sparked concern among shipping operators and energy traders about the potential for new artificial barriers on the world's most critical oil transit route.
The withdrawal of the toll proposal removes a significant source of geopolitical uncertainty for the shipping and energy sectors.
Markets had been pricing in the risk of increased transit costs and potential disruptions to the flow of crude oil and liquefied natural gas through the narrow waterway.
The reversal is likely to ease pressure on freight rates and reduce the risk premium embedded in energy prices.
The Strait of Hormuz remains a focal point for global trade, with roughly a fifth of the world's oil consumption passing through it daily.