US President Donald Trump has withdrawn a proposal to impose a 20 per cent transit fee on vessels passing through the Strait of Hormuz, even as the United States launched a new round of military strikes against Iran.
The reversal comes amid a sharp escalation in regional hostilities, with reports indicating that Kuwait has also come under renewed attack.
The simultaneous policy retreat and military intensification highlight the volatile nature of the current geopolitical standoff in the Persian Gulf.
Brent crude prices rose approximately 2 per cent, reaching a one-month high, as markets reacted to the heightened risk of supply disruption.
The price move reflects growing investor concern over the security of the Strait of Hormuz, which handles a significant portion of global oil shipments.
Despite the withdrawal of the fee proposal, the physical threat to shipping routes remains elevated due to the ongoing military operations.