Trump Scraps Hormuz Fee Plan

President Donald Trump has walked back his plan to levy a 20 percent fee on ships transiting the Strait of Hormuz, a chokepoint that moves about a fifth of the world’s oil. Instead he proposes that Gulf states pour investment into the United States in exchange for US naval protection of the waterway. The shift comes as Iran threatens to close the strait amid rising war rhetoric, and the fee idea had already drawn sharp criticism from regional allies who saw it as a cash grab. Trump’s new angle aims to cement a security‑investment partnership while defusing immediate diplomatic friction. Analysts say the move could reshape US‑Middle East economic ties.

With roughly 20 percent of global oil passing the strait, any change to its governance directly affects energy markets, shipping costs and geopolitical risk calculations for investors and governments worldwide.

The strait is a strategic artery; any US policy shift reverberates through oil prices, naval deployments and regional alliances. By replacing a fee with an investment pact, Trump seeks to lock in American influence without overt financial pressure, but the approach also raises questions about the durability of security guarantees amid volatile Iran‑US relations.