Trump backs away from threat to charge Strait of Hormuz tolls

U.S. President Donald Trump on Wednesday reversed his decision to impose a 20% toll on all cargo passing through the Strait of Hormuz, a critical waterway for global oil shipments, less than five hours before the measure was set to take effect. The reversal came amid escalating tensions with Iran, which had previously claimed to have closed the strait following a series of attacks. Trump instead proposed that Middle Eastern nations enter into trade and investment agreements with the United States, stating these would bring “MASSIVE” economic benefits. The shift occurred after Trump had announced on Monday that he would reimpose a blockade on Iranian shipping and introduce the toll as part of a broader strategy to address the conflict in the region. The proposed fee, which could have generated approximately $240 million per day, was intended to offset costs associated with securing the strait. However, the move faced immediate criticism from international bodies, including the United Nations shipping agency, which stated there was no legal foundation for such tolls in international waters. Trump’s change of course followed high-level discussions with leaders from several Middle Eastern countries. In a statement posted on Truth Social, the president said he had opted to replace the toll with trade and investment deals that Gulf states would commit to with the U.S. He emphasized that these agreements would represent substantial financial commitments, although it remained unclear whether they would differ significantly from previous announcements made during his visit to the region last year. The announcement came as oil prices fluctuated in response to the evolving situation. Earlier in the day, crude oil futures had risen sharply due to concerns over the potential disruption of global energy supply lines. However, prices later stabilized after Trump’s reversal of the toll plan, reducing some of the uncertainty surrounding the future of the conflict. Iran responded to the U.S. actions with its own military strikes. On Tuesday, Iran launched ballistic missiles targeting a U.S. military base in Jordan, according to reports. Meanwhile, Bahrain, home to a major U.S. naval base, confirmed it had repelled an Iranian aerial assault. Jordan’s defense forces said they had intercepted and destroyed four ballistic missiles, while explosions were heard in Manama, Bahrain’s capital. Before the current escalation, the Strait of Hormuz handled roughly one-fifth of the world’s oil and gas traffic daily. Any attempt to impose a toll on this vital route had drawn sharp opposition from the U.N. shipping agency, which argued that such measures lacked both legal justification and international consensus. The agency reiterated its stance that no mandatory fees should be imposed on vessels using international straits. Later on Thursday, Trump elaborated further on his position regarding the strait. During remarks to reporters, he expressed skepticism about the idea of charging fees for ships passing through Hormuz. While acknowledging the need to protect the strait for global commerce, he questioned the fairness of allowing any entity to levy charges on transit. His comments suggested a continued focus on diplomatic engagement rather than unilateral economic measures. The developments highlight the volatile nature of U.S.-Iran relations and the complex interplay of regional security, economic interests, and international law. As the situation continues to unfold, the role of Middle Eastern allies in shaping the outcome remains central to the ongoing crisis.