U.S. President Donald Trump has reversed his earlier decision to impose a Strait of Hormuz transit fee, withdrawing the proposed 20% charge on cargo passing through the strategic waterway.
Speaking from the Oval Office, Trump said he had decided to replace the proposed fee with investment agreements from Gulf countries. He described the planned investments as highly beneficial for both the United States and its Gulf partners.
The president said he changed his position after discussions with leaders from Gulf nations. According to Trump, he received calls from several heads of state, monarchs, and other influential figures, who urged him to consider a different approach.
Trump explained that his original proposal was intended to compensate the United States for providing security in the Strait of Hormuz. However, he now believes that increased Gulf investment in the U.S. is a better alternative than imposing a transit fee.
The announcement comes just a day after Trump said the United States would become the “guardian” of the Strait of Hormuz and proposed a Strait of Hormuz transit fee of 20% on all cargo vessels using the waterway.