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Home » Politics » Trump Drops Planned 20% Hormuz Transit Fee, Favors Gulf Investment

Trump Drops Planned 20% Hormuz Transit Fee, Favors Gulf Investment

Trump said Gulf states had contacted his administration and proposed an alternative approach of charging vessels to use the strait.

Sara ZouitenbySara Zouiten
Jul, 14, 2026
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Trump us iran gulf hormuz

US President Donald Trump

Rabat – US President Donald Trump has reversed his proposal to impose a 20% fee on ships transiting the Strait of Hormuz, saying he prefers Gulf countries to invest in the US rather than pay for passage through the strategic waterway.

Speaking during a White House news conference alongside Iraqi Prime Minister Ali al-Zaidi on Tuesday, Trump said he no longer supported the idea of charging vessels to use the strait.

“I don’t like the concept of a fee,” Trump told reporters, explaining that Gulf states had contacted his administration after Monday’s announcement and proposed an alternative approach.

“They said, ‘We’d love to do it a different way. We’d love to invest in the US with billions and billions of dollars,’” Trump said, adding that Washington welcomed investments in exchange for providing protection for the Strait of Hormuz.

The reversal came less than a day after Trump announced that ships passing through the vital maritime chokepoint would be required to pay a 20% toll to the US, a proposal that drew widespread attention as tensions between Washington and Tehran continue to escalate.

Despite abandoning the tariff proposal, Trump reaffirmed his administration’s hardline stance toward Iran in a social media post, reiterating the US blockade of Iranian ports.

During the same news conference, Trump accused Iran of initiating the latest round of hostilities, saying he had sought to give Tehran “a chance at making a deal” before it “shot first.”

“They shot first, and that was a big mistake,” he said, claiming US forces had destroyed “the majority” of Iran’s military capabilities.

Trump also suggested that Iran and the Lebanese group Hezbollah could be added to a sanctions bill currently under consideration by the US Congress.

The policy shift comes as fighting between the US and Iran continues to intensify. Iranian state media reported fresh explosions on Tuesday in several southern cities, including Bushehr, Bandar Abbas, Mahshahr, Abadan, Qeshm Island, Kish Island, and Andimeshk, following another wave of reported US strikes.

Meanwhile, Kuwait said its armed forces were intercepting missiles and drones in its airspace, as Iran said it was targeting US assets across the Gulf. Oman’s Maritime Security Center also confirmed that rescue operations were underway after two Emirati vessels were struck by Iranian cruise missiles in Omani territorial waters near the Strait of Hormuz.

Tags: Donald Trumpgulf countriesHormuz straitIran US
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