US President Donald Trump has scrapped 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 announcement, made on Truth Social, signals a pivot away from the aggressive tariff proposal that had sparked concern among global energy traders and shipping executives earlier in the week.
Approximately 20% of the world's oil consumption passes through the Strait of Hormuz daily, making any threat to its free flow a significant risk to energy markets.
The proposed charge, which would have applied to all cargo moving through the narrow passage between Iran and Oman, was widely viewed as a potential disruption to global oil supplies.
Approximately 20% of the world's oil consumption passes through the Strait of Hormuz daily, making any threat to its free flow a significant risk to energy markets.
The abandonment of the plan removes a looming overhang on freight rates and insurance premiums for tankers operating in the region.
According to reports from TASS and Dagbladet, the White House is now focusing on broader trade negotiations with Gulf states rather than unilateral levies.