Donald Trump drops 20% Hormuz transit fee, orders US naval blockade of Iranian ports

U.S. President Donald Trump announced a 20% reimbursement fee on cargo transiting the Strait of Hormuz, arguing it would finance the protection of the waterway. Hours later, after “highly productive conversations” with Gulf leaders, he reversed the proposal, saying the fee would be replaced by extensive trade and investment agreements with Gulf Cooperation Council states. Trump emphasized that the United States would no longer charge ships for passage but would maintain a “complete blockade” on vessels heading to or from Iranian ports.

U.S. Central Command confirmed that the naval blockade was reinstated on Tuesday, deploying more than 20 warships and hundreds of aircraft across the Middle East. The command also reported a new round of air strikes on Iranian targets to degrade capabilities used against commercial shipping in the strait. The policy shift comes amid escalating hostilities between the United States and Iran, with recent attacks reported on Iranian coastal facilities and reciprocal strikes in the region.

The withdrawal of the toll avoids legal challenges under the United Nations Convention on the Law of the Sea, while the blockade and renewed attacks raise concerns about global oil supply and maritime security.