WASHINGTON — U.S. President Donald Trump on Tuesday abandoned a proposal to impose a 20% fee on commercial cargo transiting the Strait of Hormuz, instead announcing that the United States would pursue trade and investment agreements with Gulf states while maintaining a blockade on shipping linked to Iran.
Trump said the policy change followed what he described as "highly productive conversations" with Middle Eastern leaders. In a public statement, he said trade and investment commitments from Gulf countries would replace the transit fee that he had proposed a day earlier as compensation for U.S. efforts to secure one of the world's busiest maritime corridors.
The announcement marked a significant shift in U.S. policy after the proposed charge drew criticism from shipping organizations and raised questions over the legality of imposing fees on vessels using an international waterway. The United Nations' shipping agency had previously reiterated its opposition to mandatory transit charges while seeking further details from Washington.
Trump said commercial shipping from countries other than Iran would continue to pass through the strait, while vessels traveling to or from Iranian ports or carrying Iranian cargo would remain subject to a full U.S. blockade.
The Strait of Hormuz carries a substantial share of global seaborne crude oil and liquefied natural gas exports, making it a critical artery for international energy markets. Any disruption to navigation through the waterway is closely monitored by shipping companies, commodity traders and governments because of its potential impact on freight costs, insurance premiums and energy prices.
The revised policy comes amid renewed military tensions between the United States and Iran following recent exchanges of strikes. U.S. Central Command has said operations targeting Iranian maritime capabilities are intended to reduce threats to commercial shipping, while Iranian officials have maintained their own position regarding navigation through the strategic waterway.
Industry participants have been watching closely for further guidance on how the blockade will be implemented and whether additional restrictions could affect commercial traffic. Shipping companies and insurers have also been assessing operational risks as regional security conditions remain volatile.
No detailed terms of the proposed Gulf trade and investment agreements were released on Tuesday, and the White House did not immediately provide further information on their scope or timing. The administration said the revised approach would replace the previously proposed shipping fee while keeping restrictions focused on Iran-related maritime trade.
