Donald Trump initially announced a 20% fee on all cargo transiting the Strait of Hormuz, but reversed this decision within 24 hours, proposing trade and investment deals with Gulf states instead. This policy shift occurred amidst ongoing US-Iran conflict and renewed naval blockad

Donald Trump declared the US the "guardian" of the Strait of Hormuz on Monday, announcing a 20% charge on all cargo shipped through the waterway to fund its protection. He also vowed to reimpose a naval blockade on Iran. However, by Tuesday, Trump abandoned the fee proposal, stating he would pursue "Trade and Investment Deals" with Gulf States instead, following calls from their leaders.

Policy Shift on Hormuz Fees

On Monday, Trump stated the US would impose a 20% reimbursement fee on all vessels transiting the Strait of Hormuz to cover security costs. He also announced the resumption of an American naval blockade on Iranian shipping, which had been first imposed in April and lifted in June as part of a truce deal. Trump later explained that he changed his initial fee plan after receiving numerous calls from Gulf leaders. In a post on Truth Social, he announced the replacement of the 20% fee with "Trade and Investment Deals" from Gulf States, describing these as "MASSIVE" and beneficial for their future.

Ongoing US-Iran Tensions

The abrupt policy reversal is the latest development in a conflict that has lasted over four months. Despite a month-old "memorandum of understanding" (MOU) that aimed to end the conflict and secure a temporary ceasefire, a dispute over the Strait of Hormuz has become a key point of contention. US Centcom reported a third night of attacks, and Iran's state media reported blasts in multiple cities, including Bushehr, on Tuesday. Tehran stated it had targeted US military facilities in Bahrain and Jordan after earlier hitting two United Arab Emirates tankers. The Iranians countered by stepping up attacks on US allies and commercial shipping, which reportedly brought traffic through the Strait of Hormuz to a near standstill once more.

Iranian Response to US Actions

In response to Trump's announcements, Iran stated it would remain in control of the Strait of Hormuz. Iran's Deputy Foreign Minister Kazem Gharibabadi, as reported by AFP news agency, said Trump's decision to reimpose the blockade had "dismantled" the earlier agreed truce deal. The US first imposed a naval blockade of all Iranian ports in April to pressure Tehran, redirecting 100 commercial vessels and disabling four under the blockade before lifting it in June as part of the MOU.