US President Donald Trump has abandoned plans to impose a 20% fee on cargo vessels transiting the Strait of Hormuz, marking a sharp reversal in Washington’s stance on the vital waterway.
The proposed charge, which had sparked concerns over potential disruptions to global energy supplies and trade costs, was scrapped following internal deliberations and market feedback.
The Strait of Hormuz remains a critical artery for global oil and gas flows, with roughly 20% of the world’s oil passing through it daily.
The decision is expected to ease pressure on shipping rates and oil prices, which had risen amid fears of reduced transit volumes through the chokepoint.
Brent crude and tanker equities, which had been volatile due to uncertainty over the toll’s implementation, are likely to see reduced risk premiums as the threat recedes.
The Strait of Hormuz remains a critical artery for global oil and gas flows, with roughly 20% of the world’s oil passing through it daily.
The proposed toll had raised alarms among traders and logistics firms, who feared it could deter shipments or trigger retaliatory measures from regional actors.