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 global energy supply chains and shipping costs, will instead be replaced by trade and investment agreements with Gulf states, according to a post on Truth Social.
The decision follows what Trump described as "very productive talks" with Middle Eastern leaders.
By swapping a unilateral transit tax for bilateral commercial pacts, the administration appears to be prioritizing diplomatic engagement and market stability over coercive revenue measures.
This shift directly addresses fears that a toll could have disrupted the flow of roughly one-fifth of the world's oil supply.
Markets are likely to view the move as a de-escalation of shipping risk.