President Donald Trump has reversed his proposal to impose a 20% US reimbursement fee on cargo passing through the Strait of Hormuz, saying he will instead pursue large trade and investment agreements with Gulf nations.
In a post on Truth Social, Trump said he had decided to replace the proposed fee with “Trade and Investment Deals” that Gulf states would make in the United States. He described the expected investments as “MASSIVE”, adding that they would also benefit the Gulf countries’ long-term economic growth.
The decision marks a sharp reversal from the previous day’s announcement, when Trump proposed charging ships using the strategic waterway as part of a broader US security effort in the region. The proposal had raised concerns among shipping companies and energy markets because the Strait of Hormuz carries roughly 20% of the world’s seaborne oil trade.
While the fee has been scrapped, uncertainty over the Middle East remains high. Investors continue to monitor developments in the region, as any disruption to shipping through Hormuz could quickly affect oil prices, inflation, and global financial markets.
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