President Donald Trump has dropped a proposal to charge a 20% fee on cargo passing through the Strait of Hormuz. The plan had been presented as a way to recover some of the cost of protecting the strategically important shipping route.
CNN reported that Trump announced the change after discussions with leaders from Gulf countries. He said the United States would pursue trade and investment agreements instead of collecting the proposed shipping charge. Specific details about the agreements were not immediately released.
The Strait of Hormuz is one of the world’s most important maritime routes, particularly for oil and natural gas shipments. A new cargo fee could have increased transportation costs and created uncertainty for shipping companies and energy markets.
Under the revised policy, most international vessels would continue using the waterway without paying the proposed fee. Restrictions would remain in place for ships traveling to or from Iranian ports or carrying Iranian cargo.
The decision removes an immediate concern for commercial shipping while maintaining United States pressure on Iran.