**Trump Reverses 20% Fee on Hormuz Cargo Amid Heightened Tensions with Iran**
*Published: 14 July 2026, 17:34 BST*
In a significant shift in policy, President Donald Trump has announced the cancellation of his proposed 20% fee on cargo shipping through the Strait of Hormuz, a vital maritime route for global oil and gas shipments. This decision comes as the United States prepares to reimpose a naval blockade on Iranian ports amid escalating tensions between the two nations.
The reversal of the fee was made public just hours before the U.S. was set to resume its blockade, which aims to curtail Iran's influence in the region and protect shipping lanes critical for international trade. Trump stated that the fee would be replaced with trade and investment agreements between the U.S. and Gulf states, emphasizing the potential for "massive" investments that would benefit both parties.
In a post on Truth Social, Trump explained, "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." He did not provide specific details about these agreements but expressed confidence in their positive impact.
The Strait of Hormuz is a crucial chokepoint through which approximately 25% of the world's oil and 20% of global liquefied natural gas pass. Recent military actions, including U.S. strikes aimed at degrading Iran's capacity to threaten shipping in the area, have resulted in a significant slowdown of maritime traffic through the Strait. Shipping data indicates that traffic has reached a two-month low, while Brent Crude oil prices have surged in response to the heightened volatility.
Trump's initial proposal of a fee was met with criticism, and he acknowledged receiving numerous calls from Gulf leaders urging him to reconsider. "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 remarked during a press conference following discussions with Iraqi Prime Minister Ali al-Zaidi.
The backdrop to this policy shift includes a series of military exchanges between the U.S. and Iran. Recently, U.S. Central Command confirmed that American forces had conducted a third night of strikes against Iranian targets, following Iran's reported attacks on U.S. military facilities in Bahrain and Jordan, as well as two tankers in the United Arab Emirates. Iranian state media reported explosions in several cities, including Bushehr, which is home to Iran's nuclear power plant.
Iran has accused the U.S. of interfering in its management of the Strait of Hormuz, asserting that control over this waterway allows Tehran to exert pressure on the global economy. In contrast, Trump has declared the U.S. as the "guardian" of the Strait, asserting that the U.S. military's presence ensures that oil continues to flow freely, except for Iranian vessels.
In a related development, Israeli Prime Minister Benjamin Netanyahu issued a warning to Iran, stating that any attack on Israel would provoke a significantly stronger response. "Do not count on things remaining quiet if you attack us," he cautioned in a video message.
As the situation continues to evolve, the implications of these developments on global oil markets and regional stability remain to be seen. The U.S. blockade and the strategic importance of the Strait of Hormuz underscore the ongoing complexities of U.S.-Iran relations and the broader geopolitical landscape in the Middle East.