Trump Reverses Plan to Charge Strait of Hormuz Transit Fees, Opts for Gulf Trade Deals Instead

On July 12, 2026, U.S. President Donald Trump announced he is abandoning his previous plan to impose a 20% transit fee on ships passing through the Strait of Hormuz. Instead, he will seek trade and investment agreements with Gulf countries. Trump stated this decision followed "very productive talks with Middle Eastern leaders," and expects "massive" investments into the U.S. that will create millions of high-paying American jobs through new factories and manufacturing facilities.

Trump emphasized that the Strait of Hormuz remains open to all shipping traffic except vessels connected to Iran. He credited the strength of the U.S. military, including Defense Secretary Pete Hegseth, Joint Chiefs Chairman General Dan Cane, and Central Command Admiral Brad Cooper, for maintaining this access. The president reiterated that the U.S. enforces a full blockade only on ships arriving at or departing Iranian ports or carrying Iranian-related cargo, citing Iran's "deceptive, violent, and malicious leadership" as the cause.

Reaffirming his commitment to preventing Iran from obtaining nuclear weapons, Trump declared, "The days of Iran killing hundreds of thousands, including 52,000 protesters, are over. Most importantly, Iran will never have nuclear weapons." This reversal comes a day after Trump told Fox News that U.S. forces were "taking control of the Strait of Hormuz" and justified the proposed transit fee as a fair measure against Iran, which he described as a "group of bad people." He clarified that other nations would continue to use the strait freely and fairly.

The shift from a punitive fee to economic cooperation marks a strategic adjustment in U.S. policy toward the Gulf region amid ongoing tensions with Iran and efforts to secure maritime trade routes vital for global oil supply.