Trump drops 20% Strait of Hormuz toll, replaces with investment deals

US President Donald Trump has scrapped the proposed 20% toll on vessels transiting the Strait of Hormuz, announcing instead that Gulf states will make commercial and investment deals with the United States. The reversal came one day after Trump declared the fee would be charged to cover the cost of ensuring safe passage through the strategic waterway Source: hoydo, infobae.

What happened

In a series of Truth Social posts on Tuesday, Trump said that after "very productive conversations with Middle Eastern leaders" he decided to replace the "20% reimbursement tax" with trade and investment agreements. He added that the strait remains open to all maritime traffic except that related to Iran, against which he said the US would impose a total blockade on ships entering or leaving Iranian ports Source: infobae. The announcement follows a period of escalating hostilities between the US and Iran, including military exchanges in the Persian Gulf that broke a June 17 ceasefire Source: emolcl.

The reaction

The Iranian military responded firmly, stating that its armed forces will not yield "one iota" over the Strait of Hormuz, a critical chokepoint for global oil shipments Source: hoydo, emolcl. Meanwhile, Trump praised US military leaders—including Secretary of War Pete Hegseth and CENTCOM commander Admiral Brad Cooper—for their role in securing the waterway Source: infobae.

Key points

• The proposed 20% toll was dropped in favor of unspecified Gulf investments that Trump claimed would create "millions of high-paid American jobs."