Trump Abandons Hormuz Toll, Restores Iran Blockade
President Donald Trump has scrapped his proposed 20% shipping fee on vessels passing through the Strait of Hormuz, replacing it with unspecified trade and investment deals with Gulf states. The reversal, announced on social media, came just a day after he declared the US the "guardian" of the waterway. Trump claimed the investments would be "MASSIVE" but provided no details on participating governments, value, or whether they were new pledges. Simultaneously, he restored a blockade targeting Iranian trade, continuing pressure on Tehran. The Strait of Hormuz carries about a fifth of globally traded oil and natural gas. The decision marks another policy flip-flop by the administration.
Key facts
- Trump scrapped the 20% Hormuz toll plan.
- The toll is replaced by trade and investment deals with Gulf states.
- Trump announced the reversal on social media.
- No details on participating governments, value, or newness of pledges were given.
- The blockade targeting Iranian trade has been restored.
- The Strait of Hormuz carries about a fifth of globally traded oil and natural gas.
- The reversal came one day after Trump declared the US 'guardian' of the strait.
- The policy shift is described as a flip-flop.
Entities
Institutions
- United States
- Gulf States
- Middle East
- Washington
- Strait of Hormuz
Locations
- United States
- Gulf States
- Middle East
- Washington
- Strait of Hormuz
- Iran