Trump abandons Strait of Hormuz fee plan as US prepares to reinstate Iran blockade
President claims oil is flowing freely, but shipping data shows traffic at two-month low
US President Donald Trump has withdrawn his proposed 20% fee on cargo transiting the Strait of Hormuz, a policy measure that was active for approximately 24 hours. The reversal was announced via a post on Truth Social, where the President declared that the critical waterway remains open to all ship traffic with the exception of Iran.
The administration has replaced the controversial toll with new trade and investment deals with Gulf states. While the specific details of these agreements have not been fully elaborated, the pivot marks a significant shift in the United States' approach to managing the strategic chokepoint amidst heightened regional tensions.
Trump asserted that oil is "flowing like never before" as a result of US military power. However, this claim stands in direct contrast to available shipping data, which indicates that traffic through the Strait has slowed to a two-month low. Furthermore, benchmark Brent Crude oil prices have risen sharply, suggesting market disruptions that contradict the narrative of unimpeded flow.
The decision coincides with the United States preparing to reinstate a naval blockade on Iranian ports. The blockade is scheduled to commence at 16:00 Eastern Time on Tuesday. The operational scope of the reinstated blockade has not been detailed beyond this start time, but it follows ongoing military strikes and missile activity in the region.
Iran holds strategic leverage regarding the Strait of Hormuz, which it utilises in its assessment of the US-Iran conflict cycle. Despite this leverage, Iran’s leadership has previously perceived threats of invasion from former President Trump as empty. The policy reversal occurs while the United States is also participating in the 2026 World Cup, having recently defeated Paraguay 4-1 in Group D.
