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 been announced earlier in the week, was intended to fund security operations keeping the waterway open.
Its withdrawal eliminates a significant new cost layer for global maritime trade.
The decision comes as markets remain sensitive to any disruption in the Strait of Hormuz, through which roughly a fifth of the world’s oil supply passes.
While the removal of the fee alleviates immediate tariff concerns, underlying geopolitical risks remain elevated.
Recent exchanges of strikes between the US and Iran have reignited shipping risk, keeping insurance premiums and freight rates volatile.