US President Donald Trump has abandoned his proposal to impose a 20% toll on all cargo vessels transiting the Strait of Hormuz.
The decision marks a sharp reversal from plans announced just days earlier, which had sparked concern among global traders and shipping executives about the potential disruption to one of the world’s most critical energy chokepoints.
The proposed fee was initially framed as a mechanism to fund US security operations in the waterway, with the administration declaring the United States as the “guardian” of the route.
However, the plan faced immediate backlash from international partners and industry groups, who warned that such a levy could severely disrupt global oil and gas supplies, which account for roughly a third of seaborne oil trade.
Instead of the toll, the White House is now pivoting toward broader trade agreements with Gulf states.
This shift suggests a strategic recalibration, aiming to secure regional stability and economic cooperation without imposing direct costs on commercial shipping.