Trump Drops 20% Hormuz Transit Fee, Keeps Naval Blockade on Iran

By Staff, Agencies

US President Donald Trump on Tuesday withdrew his plan to impose a 20% fee on cargo transiting the Strait of Hormuz just hours before the measure was scheduled to take effect, replacing it with unspecified trade and investment commitments from Gulf states.

In a post on Truth Social, Trump said he had decided to abandon the proposed "United States Reimbursement Fee" following what he described as productive discussions with Middle Eastern leaders.

"Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," Trump wrote.

He did not identify the participating countries or provide a financial value for the proposed agreements, describing the expected investments only as "MASSIVE" and claiming they would create factories, industrial facilities, equipment, and millions of high-paying jobs in the United States.

The decision reverses Trump's announcement a day earlier that all commercial cargo transiting the Strait of Hormuz would be subject to a 20% reimbursement fee to compensate Washington for securing the strategic waterway.

On Monday, Trump had argued that Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, and Kuwait should pay the United States for protecting maritime navigation and regional allies, including “Israel.”

Despite abandoning the transit fee, Trump confirmed that the US naval blockade targeting Iranian shipping remains in force.

He said the blockade applies only to vessels traveling to or from Iranian ports or carrying Iranian cargo, while insisting that the Strait of Hormuz will remain open to all other international maritime traffic.

The policy shift comes as Iranian officials continue to reject Washington's claims of authority over the Strait of Hormuz, maintaining that the strategic waterway falls under Iran's sovereign rights and existing regional agreements.