US President Donald Trump has abandoned plans to impose a 20% fee on cargo vessels transiting the Strait of Hormuz, marking a sharp pivot in Washington’s approach to the critical waterway.
The proposed charge, which had sparked immediate concern among global shippers and energy traders, was withdrawn less than 24 hours after its initial announcement.
Trump cited "constructive signals" from Gulf states as the basis for the reversal, signaling a shift from unilateral tariffs to diplomatic engagement.
The decision effectively neutralizes a significant near-term risk to global energy flows.
The Strait of Hormuz remains the world’s most vital oil chokepoint, handling roughly a fifth of global crude supplies.
The threat of a US-imposed toll had raised fears of transit delays, insurance spikes, and potential retaliatory measures from regional actors.