Trump abandons proposed 20% fee on Hormuz cargo as US resumes Iranian port blockade

President Donald Trump announced on his social-media platform that the United States would not impose the 20% reimbursement fee it had threatened for cargo ships using the Strait of Hormuz. He said the fee would be replaced by "massive" trade and investment agreements with Gulf states, though no specifics were provided.

The reversal comes as U.S. Central Command reported a new round of air strikes against Iranian facilities aimed at degrading capabilities used to target commercial shipping in the waterway. The strikes follow earlier attacks that hit multiple Iranian cities, including Bushehr, which hosts a nuclear power plant.

Trump also stated that the strait remains open to all vessels except those from Iran and claimed that oil flow has increased due to U.S. military actions. After meeting Iraq’s new prime minister, he added that while he dislikes the idea of a fee, he believes protecting the strait for global commerce is justified.

Iran responded that it will continue to control the Strait of Hormuz. The United States had first imposed a naval blockade of Iranian ports in April, lifted it in June under a memorandum of understanding, and now says the blockade has been reinstated as part of ongoing pressure on Tehran.

Shipping traffic through the strait has fallen to a two-month low, and Brent crude prices have risen sharply. The waterway, which carries about a quarter of the world’s oil and 20% of global liquefied natural gas, has been effectively shut down since late February after U.S. and Israeli strikes on Iran.