Trump Cancels Hormuz Fee, Seeks Trade Deals Instead

U.S. President Donald Trump announced Tuesday he is rescinding a proposed 20% fee on cargo ships passing through the Strait of Hormuz. The reversal came after "highly productive discussions" with Middle Eastern leadership, according to a post on Trump's Truth Social platform.

Instead of the fee, Trump stated the U.S. will pursue trade and investment deals with Persian Gulf nations. The announcement marks a swift turnaround from Monday, when Trump declared the U.S. would charge the fee, citing American responsibility for securing the strategic waterway.

The Strait of Hormuz remains open to all traffic except for Iran's, as the U.S. has threatened a maritime blockade against Iran starting Tuesday evening. This action is a response to recent Iranian activities in the strait, where Iran has reportedly fired on vessels and claimed to be capable of closing the passage.

Earlier on Tuesday, the UAE's Ministry of Defense reported that Iran had launched cruise missiles at two of the country's ships in the strait. The U.S. has conducted strikes against Iran for three consecutive nights, asserting these actions are necessary to protect civilians and maritime traffic in the Strait of Hormuz.