Trump Backs Down on 20 Percent Hormuz Transit Fee After Gulf States’ Intervention
Lucky Obukohwo, Reporting
United States President Donald Trump has dropped plans to impose a 20 per cent “safe passage” fee on vessels transiting the Strait of Hormuz after appeals from several Gulf nations.
Trump unveiled the proposal on Monday, arguing that the United States, as the “guardian” of the strategic waterway, should charge ships using the route to help cover the cost of maintaining its security.
The announcement sparked concerns among Gulf allies and drove global oil prices higher amid fears of increased shipping costs and potential disruptions to energy markets.
According to reports, leaders of Saudi Arabia, the United Arab Emirates, Bahrain and Qatar quickly engaged the US president in discussions, urging him to reconsider the policy because of its potential impact on regional trade and the global energy market.
Announcing the reversal on Tuesday through a post on Truth Social, Trump said he had decided to replace the proposed transit fee with trade and investment agreements involving Gulf states.
“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 wrote.
Trump said the agreements would result in substantial Gulf investments in the US, including new factories, industrial plants and equipment, describing the expected investments as “massive” and beneficial to both sides.
Although Gulf countries have pledged to invest trillions of dollars in the United States, the timeline and scale of those commitments remain uncertain.
The policy reversal comes as tensions persist in the Middle East, with the United States continuing military operations against Iran despite ongoing diplomatic efforts aimed at resolving the conflict.
