President Donald Trump has abandoned his threat of a 20% fee on cargo passing through the Strait of Hormuz, saying it will instead be replaced by trade deals with Gulf states.
Speaking in the White House, Trump said his decision was made after calls from those countries, adding he doesn’t “like the concept of a fee”.
That came after the US and Iran again exchanged more strikes overnight, with tankers in the Strait of Hormuz hit by Iran’s Islamic Revolutionary Guard Corps, killing at least two crew members.
Iranian state media reported multiple explosions taking place near port cities during the day. Earlier, Iran said it had launched attacks against US sites in Bahrain and Jordan. A British expat living in Bahrain tells our security correspondent that strikes there left him “trembling”.
Despite the security issues, one expert says some shipping operators may be willing to take the risk of crossing the strait, while another says the industry is making “hour by hour decisions” on whether to transit.
He announced that the Strait of Hormuz is open to all ship traffic except for Iran. “We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo,” he posted on Truth Social.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” he said in a post on Truth Social.
Mr. Trump did not mention any commitments by Gulf states, saying “Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future.”
Shortly after Mr. Trump made the 20% fee proposal on Monday (July 13, 2026), the U.N.’s shipping agency said it opposed fees on ships passing through maritime waterways but added it would await more details of what Trump had in mind.