President Donald Trump has withdrawn a proposal to impose a 20% fee on commercial vessels transiting the Strait of Hormuz, just hours before the charge was scheduled to take effect.
The reversal comes amid a sharp escalation in regional hostilities, with Iran launching new attacks on US military bases in the region.
The decision to scrap the toll represents a significant de-escalation of trade policy risks, even as kinetic military threats persist.
Markets reacted swiftly to the news, with Brent crude futures easing from session highs as the immediate threat of a formalized toll on global oil flows was removed.
The Strait of Hormuz remains the world’s most critical energy chokepoint, handling roughly a fifth of global oil consumption.
The prospect of a unilateral US fee had sparked fears of retaliatory shipping disruptions and insurance premium spikes, which now appear to have receded.