US President Donald Trump has abandoned plans to impose a 20% levy on all cargo transiting the Strait of Hormuz, marking a sharp reversal in Washington’s stance on the world’s most critical energy chokepoint.
The administration replaced the proposed toll with new trade agreements with Gulf allies, effectively neutralizing a policy that threatened to disrupt a fifth of the world’s oil supply.
The decision comes just a day after Trump declared that the US would act as the “guardian of the Hormuz strait,” a statement that had sparked fears of heightened geopolitical friction and potential transit disruptions.
By pivoting to diplomatic trade deals rather than a unilateral tax, the White House has signaled a preference for cooperation with regional partners over coercive economic measures.
Markets reacted swiftly to the de-escalation.
Brent crude futures eased from recent highs as the immediate risk of a shipping levy-induced supply shock receded.