US President Donald Trump has abandoned plans to impose a 20% levy on cargo transiting the Strait of Hormuz, opting instead for a new arrangement involving direct investment from Gulf states.
The president stated that calls from regional leaders, including "kings and emirs," prompted the shift in strategy, replacing the proposed toll with a framework for capital inflows into the US economy.
The decision marks a significant de-escalation in the immediate threat to global trade routes.
The Strait of Hormuz remains a critical chokepoint for global oil and gas shipments, and the prospect of a unilateral US toll had raised fears of severe disruption to energy flows and freight costs.
By withdrawing the proposal, Washington has temporarily eased the pressure on shipping markets and reduced the risk of a retaliatory closure of the waterway.
This development follows a period of heightened volatility in the shipping and energy sectors.