US President Donald Trump has dropped a proposed 20% fee on cargo ships passing through the Strait of Hormuz, replacing the plan with trade and investment agreements involving Gulf states.
Trump said the decision followed discussions with Middle Eastern leaders, who expressed interest in increasing investments in the United States. He said the new agreements would replace the planned “United States Reimbursement Fee” on vessels using the strategic waterway, according to Reuters reports.
The proposed fee had been announced as a way to help cover the costs of protecting the Strait of Hormuz, one of the world’s most important shipping routes through which a significant share of global oil supplies passes.
Trump said the waterway would remain open to international shipping but warned that ships travelling to and from Iranian ports, or carrying Iranian-related cargo, would face restrictions.
The move comes as tensions continue to rise between the United States and Iran, with Washington maintaining pressure on Tehran over security concerns in the region.
