US President Donald Trump has scrapped plans to impose a 20% fee on cargo vessels transiting the Strait of Hormuz, marking a sharp reversal in Washington’s stance on the vital waterway.
The announcement, made on Truth Social, signals a pivot away from the proposed toll that had raised concerns among shipping operators and energy traders about potential disruptions to global oil flows.
The decision removes a significant source of uncertainty for the shipping and energy sectors.
The proposed fee had threatened to increase costs for vessels passing through the chokepoint, which handles roughly a fifth of the world's oil supply.
By abandoning the plan, the administration appears to be prioritizing stability in Gulf trade routes over the revenue or leverage the fee might have provided.
This move comes amid ongoing tensions in the region, with US strikes escalating the conflict with Iran.