President Donald Trump has decided not to go ahead with his plan to impose a 20% fee on cargo passing through the Strait of Hormuz. Instead, the U.S. will focus on securing trade and investment deals with Gulf countries in exchange for ensuring safety in this crucial waterway.
In a post on Truth Social on Tuesday, Trump mentioned that the Strait of Hormuz is open to all ships, except those heading to Iranian ports or carrying Iranian goods, as the U.S. prepares to enforce its naval blockade against Iran.
Trump stated, "We will therefore have a FULL Blockade, but only on ships going to and from Iranian ports or carrying anything related to Iranian cargo."
Earlier on Monday, Trump labeled the U.S. as the "Guardian of the Hormuz Strait" and suggested charging a 20% reimbursement fee on all cargo using the strait to offset security costs.
On Tuesday, he announced that this fee would be replaced after discussions with regional leaders.
"Based on very productive talks with Middle Eastern leaders, I have decided to replace the 20% U.S. Reimbursement Fee with trade and investment agreements that the Gulf States will make with the United States," Trump wrote.
Trump did not specify which countries were involved, the amounts of investment, or whether any formal agreements were made. The White House has yet to provide any supporting documents or details on how these arrangements might work.
This change avoids a shipping charge that would have conflicted with the International Maritime Organization's stance that transit through the Strait of Hormuz should be toll-free under international law.
Blockade Takes Effect
The announcement coincided with U.S. Central Command's preparations to enforce a renewed blockade of all Iranian ports starting at 4 p.m. ET on Tuesday.
Under U.S. naval instructions, ships suspected of entering or leaving Iranian ports without permission could be intercepted, diverted, boarded, or captured. Neutral vessels traveling through the Strait of Hormuz to non-Iranian destinations can still pass through, although they may be stopped and checked for illegal cargo or attempts to breach the blockade.
Humanitarian shipments like food and medicine may receive approval after vetting by the U.S. Navy but will still be subject to inspection.
The Joint Maritime Information Center (JMIC) indicated that vessels should expect heavy naval presence, increased communication, and ongoing monitoring by Iran’s Islamic Revolutionary Guard Corps. They advised ships to keep a distance of 30 nautical miles from U.S. naval units to lower the chances of misidentification.
Trump Says Oil Is Flowing
Trump began his statement by asserting that “oil is flowing like never before” due to U.S. military operations, and he praised Pentagon and Central Command leaders for keeping the strait open.
However, traffic data shows that commercial movements are significantly down compared to normal levels.
JMIC recorded only four transits through the Strait of Hormuz on July 12 and twelve on July 13, while the historical average is around 138 vessels per day. Tanker traffic was notably limited, with only one tanker transit on July 12 and three on July 13. Some operators have postponed their passages due to repeated attacks on merchant ships.
JMIC has maintained a SEVERE threat assessment for the Strait of Hormuz, indicating that hostile actions are very likely. It reported ten Iranian attacks since June 25, along with ongoing mine threats and navigation interference against ships with active AIS transponders.
The threat level in the Gulf of Oman has also been raised to SUBSTANTIAL after a tanker attack northeast of Qalhat, Oman, indicating another attack could happen soon.
The latest JMIC update confirmed three attacks on tankers on July 13, including the Mombasa B and Al Bahyah in the southern Omani route. One of the attacks resulted in a fatality, and another caused several injuries, some serious.
The renewed blockade and Trump's reversal on the cargo fee signify a significant shift in U.S. policy. This comes after a June memorandum aimed at reducing hostilities and reopening Iranian maritime trade. The U.S. had lifted its previous blockade on June 18, only to reinstate it less than a month later due to renewed attacks on commercial shipping and U.S. military strikes against Iranian targets.