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 concern among shipping lines and energy traders, was scrapped in favor of a new approach focused on Gulf trade compensation.
The Strait of Hormuz handles roughly a fifth of the world’s oil consumption, and a 20% toll would have rippled through freight rates and energy prices.
The decision removes a significant potential cost shock for global supply chains.
The Strait of Hormuz handles roughly a fifth of the world’s oil consumption, and a 20% toll would have rippled through freight rates and energy prices.
Markets had been pricing in heightened route risk, with Brent crude and tanker equities volatile amid uncertainty over US policy.
The pivot to Gulf trade compensation suggests a shift from punitive measures to diplomatic engagement.