President Donald Trump has reversed his short-lived proposal to charge a 20% toll on ships transiting the Strait of Hormuz, replacing it with planned trade and investment deals with Gulf allies. The policy shift comes as a month-old ceasefire collapses, with the U.S. resuming its naval blockade of Iranian ports and launching three days of airstrikes. Iran has retaliated by striking U.S. assets in Jordan and Bahrain and attacking commercial tankers, killing one Indian seafarer and driving oil prices past $86 a barrel.
Trump's Hormuz toll reversal
- ▪President Donald Trump announced on July 14, 2026, that the United States would replace its proposed 20% reimbursement fee on ships transiting the Strait of Hormuz with trade and investment deals with Gulf Arab states
- ▪The Baltic and International Maritime Council estimated that a 20% cargo levy would cost a Very Large Crude Carrier approximately $27 million per voyage
- ▪President Donald Trump stated that his decision to cancel the 20% shipping toll followed phone calls and conversations with Middle East leaders, including various kings and emirs
US-Iran memorandum collapse
- ▪The temporary ceasefire and memorandum of understanding signed by the United States and Iran in mid-June 2026 collapsed on July 14, 2026, when President Donald Trump announced a resumption of the naval blockade
- ▪The United States and Iran are nearly halfway through the 60-day negotiation period established by their memorandum of understanding to reach a final truce
Strait of Hormuz blockade
- ▪The United States military previously redirected 100 commercial vessels and disabled four during its initial five-week naval blockade of Iranian ports starting in April 2026
- ▪The United States military officially resumed its naval blockade of all Iranian ports, targeting ships traveling to and from Iranian ports or carrying Iranian cargo
Oil prices inflation concerns
- ▪On July 13, 2026, the price of a barrel of oil jumped nearly 10% following President Donald Trump's initial social media post proposing the Strait of Hormuz shipping toll
- ▪The price of crude oil rose to a four-week high of more than $86 a barrel on July 14, 2026, amid renewed hostilities in the Strait of Hormuz
Iran War military stalemate
- ▪The United States military conducted three consecutive days of airstrikes against targets across Iran, including the port cities of Bushehr and Bandar Abbas
- ▪One Indian seafarer was killed and 10 other Indian nationals were seriously wounded by Iranian attacks on two commercial tankers in the Strait of Hormuz
- ▪Iran retaliated against United States military strikes by targeting facilities in Bahrain and Jordan, and attacking two commercial tankers associated with the United Arab Emirates
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