US President Donald Trump has abandoned his proposal to impose a 20% fee on all cargo transiting the Strait of Hormuz, marking a significant reversal in Washington’s approach to the critical energy chokepoint.
The decision comes as Iran has escalated its military posture by targeting US bases in the region, prompting a pivot toward new trade agreements with Gulf states rather than unilateral tolling.
The proposed fee, which Trump had previously framed as necessary to fund security operations and position the US as the waterway’s "guardian," faced immediate backlash from global shipping operators who warned it would disrupt supply chains and inflate energy costs.
By dropping the plan, the administration appears to be prioritizing de-escalation and regional stability over revenue generation from transit fees.
This development follows a period of heightened uncertainty in global shipping markets, where fears of a US-imposed toll had already begun to weigh on freight rates and tanker valuations.
The Strait of Hormuz remains a vital artery for global oil flows, handling roughly a fifth of the world’s crude supply.