United States President Donald Trump has abandoned his proposal to impose a 20 per cent fee on cargo passing through the Strait of Hormuz, choosing instead to pursue major trade and investment agreements with Gulf nations as US military operations against Iran intensified.
Trump announced the policy shift shortly before the United States Central Command (CENTCOM) launched another round of strikes on Iranian military assets, saying the operations were aimed at weakening Iran’s ability to threaten commercial shipping in the strategic waterway.
In a statement issued late Tuesday, CENTCOM confirmed fresh strikes against Iranian targets linked to attacks on commercial vessels operating in the Strait of Hormuz.
The latest operation marked the third consecutive night of US military action. Iranian state media reported explosions in several cities, including Bushehr, home to the country’s only nuclear power plant.
Iran said it responded by targeting US military facilities in Bahrain and Jordan following earlier attacks on two United Arab Emirates oil tankers.
The renewed hostilities have further heightened tensions around the Strait of Hormuz, one of the world’s most critical maritime trade routes. While Tehran accused Washington of escalating the conflict, the United States maintained that its operations were intended to safeguard international shipping.
Trump had previously proposed a 20 per cent charge on all cargo passing through the Strait, arguing that the United States, as the “guardian” of the waterway, should recover part of the cost of protecting global trade.
However, in a post on Truth Social, the US president announced that he had abandoned the plan in favour of stronger economic partnerships with Gulf nations.
“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. Those investments will be massive but, at the same time, extraordinarily good for them and their future,” Trump wrote.
Although he did not disclose details of the proposed agreements, Trump said the Strait of Hormuz remained open to commercial shipping, except for Iranian vessels, adding that global oil supplies continued to flow.
Speaking after meeting Iraqi Prime Minister Ali al-Zaidi in Washington, Trump said discussions with Gulf leaders influenced his decision to abandon the proposed fee.
“I don’t like the concept of a fee, but at the same time, it’s not fair that we’re protecting this Strait for the entire world,” he said
Iran dismissed Trump’s comments, insisting it remained in control of the Strait of Hormuz.
Deputy Foreign Minister Kazem Gharibabadi said the renewed US naval blockade had undermined an earlier truce between both countries.
The United States had imposed a naval blockade on Iranian ports in April before suspending it in June under an agreement aimed at easing tensions.
Meanwhile, shipping data shows vessel traffic through the Strait of Hormuz has fallen to its lowest level in two months, while global oil prices continue to rise over concerns about possible supply disruptions.
Israeli Prime Minister Benjamin Netanyahu also warned Iran against launching further attacks, saying Israel would respond if provoked.
