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 concern among shipping operators and energy traders, will not be implemented.
The decision significantly reduces immediate policy risk for global trade routes.
The Strait of Hormuz remains a vital chokepoint for global oil and gas shipments, and the threat of a unilateral US toll had raised fears of increased transit costs and potential retaliatory measures.
By dropping the proposal, the administration appears to be prioritizing stable energy flows over punitive trade measures.
This reversal follows recent statements from Iran, which had assured the United States it would not impose tolls or insurance costs on vessels passing through the strait.