Trump Shifts Strategy: Trade Deals Over Strait Fee

President Trump reversed a plan to impose a 20% feeto protect the Strait of Hormuz amid the Iran conflict. Instead, he seeks investment deals with Gulf states. The reversal comes after escalating attacks, impacting oil prices and heightening concerns over global energy and inflation. Diplomatic talks continue in the region.

U.S. President Donald Trump abandoned a proposal to levy a 20% fee to secure the Strait of Hormuz, opting for investment deals with Gulf states. This reversal followed a series of attacks that risked further escalation in the region.

The decision came just hours before the fee was set to take effect at 2000 GMT. Trump announced on Truth Social a shift in policy, crediting discussions with Middle Eastern leaders. As a result, oil futures, which had risen earlier, saw trimmed gains.

Iran retaliated by targeting a U.S. Army base in Jordan, adding to regional tensions. The ongoing conflict has disrupted global energy supplies and inflamed inflation fears worldwide, while the U.N. has opposed any tolls on international straits.