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 global shippers and energy traders, was replaced with a new focus on securing investment deals with Gulf states.
The decision significantly reduces the immediate risk of a policy-driven disruption to one of the world’s most vital trade chokepoints.
With roughly a fifth of global oil supplies passing through the strait, the prospect of a US-imposed toll had threatened to inflate freight costs and complicate supply chains.
By stepping back from the fee, the administration signals a preference for economic engagement over direct taxation of transit, potentially easing pressure on shipping rates and insurance premiums.
This development follows a period of heightened volatility in the region, including recent exchanges of fire between US and Iranian forces in the strait.