U.S. President Donald Trump has withdrawn his proposal to impose a 20% fee on cargo transiting the Strait of Hormuz, reversing the plan just a day after announcing it. Instead, Trump said the United States will pursue trade and investment agreements with Gulf states following what he described as “productive conversations” with regional leaders.
Despite dropping the proposed fee, the Trump administration has moved ahead with reinstating a U.S. naval blockade targeting Iranian ports and vessels linked to Iran. The White House said the Strait of Hormuz will remain open for international shipping, except for traffic associated with Iran.
The renewed blockade comes amid escalating tensions between Washington and Tehran, raising concerns over regional security and global energy supplies. Iran has condemned the move and warned of possible disruptions to Middle East energy exports, while oil markets remain volatile as investors closely monitor developments.