US President Donald Trump has abandoned plans to impose a 20% fee on cargo vessels transiting the Strait of Hormuz, marking a sharp pivot in Washington’s approach to the critical waterway.
The proposed charge, which had sparked concerns over potential disruptions to global energy supplies and shipping costs, was dropped without further escalation.
The decision comes after reports that the administration was weighing the economic impact of such a toll on global markets.
By withdrawing the proposal, the White House signals a preference for diplomatic engagement over punitive trade measures in the region.
This move is expected to alleviate immediate pressures on shipping insurers and freight forwarders who had begun pricing in higher risk premiums.
Multiple wire services, including TASS and Dagbladet, confirmed the reversal, noting that the administration is now focusing on broader Gulf trade deals rather than unilateral tariffs.