Donald Trump has reversed a decision to impose a 20% fee on cargo ships passing through the Strait of Hormuz less than 24 hours after announcing it. The move comes as the US military launched a seventh wave of strikes and simultaneously reinstated a blockade of Iranian ships transiting the waterway.
The initial plan, announced by President Trump, would have required reimbursement for all cargo shipped via the Strait of Hormuz. However, he now intends to “replace” the fee with investment in the Gulf region, according to the Financial Times. The BBC US reports that Trump scrapped the threat after a day, as the US continues efforts to disrupt Iran’s influence over the waterway.
The decision follows the reinstatement of a blockade targeting Iranian ships, as reported by the Japan Times. GB News highlights the quick reversal on the 20% cargo toll, emphasizing it occurred just one day after the initial announcement and alongside the renewed blockade. No reason for the change was given beyond Trump’s statement that he would replace the fee with Gulf investment.
The US military has conducted a series of strikes in connection with these actions, marking the seventh wave as reported by the Financial Times. The purpose of both the blockade and the proposed fee appears to be an attempt to curtail Iran's control over the strategically vital Strait of Hormuz, though Trump’s shift away from the fee introduces uncertainty about the long-term strategy.
The situation remains fluid, with no indication of how Gulf investment will replace the revenue expected from the cargo fee or what specific conditions would need to be met for a sustained de-escalation. The immediate impact of the reinstated blockade on shipping routes and regional stability is also currently unclear.
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