Donald Trump drops 20% Strait of Hormuz fee and pivots to Gulf trade deals

U.S. President Donald Trump announced a 20% fee on all cargo transiting the Strait of Hormuz, framing it as a reimbursement for security costs. Within a day, Gulf leaders pressured the White House, and Trump reversed the proposal, saying the fee would be replaced by “massive” trade and investment agreements with Gulf states while keeping the waterway open to all except Iranian vessels.

The United States also resumed its naval blockade of Iranian ports, disabling an empty oil tanker bound for Iran and conducting a second wave of strikes on Iranian military facilities. Iran responded with attacks on U.S. bases in the Gulf and warned the strait would remain closed until U.S. aggression stops.

Oil markets reacted sharply: Brent and WTI prices rose on the fee announcement, then moderated after the reversal, with Brent hovering around $84‑85 per barrel and WTI near $79 per barrel. Analysts linked the price moves to the broader U.S.–Iran conflict, regional security concerns, and shifting insurance and freight costs.