Trump withdraws planned 20% levy on Hormuz ships, calls for trade deals with Gulf countries instead

Donald Trump announced on Tuesday that the United States will no longer impose a 20 percent levy on ships passing through the Strait of Hormuz. Instead, he stated that the U.S. will pursue trade and investment deals with Gulf states. This decision follows a previous announcement where Trump indicated the introduction of the fee, claiming it was a means for the U.S. to be reimbursed for its role as the "guardian of the Strait." He emphasized that the Strait of Hormuz is open to all ship traffic except for Iran. The context of this announcement comes amid escalating tensions between the U.S. and Iran. The U.S. had planned to reinstate a blockade on Iranian ports, which was set to begin on Tuesday. This development follows reports of Iran attacking two tankers and firing at U.S. military sites, indicating a resurgence of hostilities between the two nations over the strategic waterway. Trump's shift from the shipping toll to investment deals was communicated through a post on Truth Social, where he mentioned having "highly productive conversations" with Middle Eastern leadership. The U.S. military's enforcement of a maritime blockade on Iran was also scheduled to commence on the same day as Trump's announcement regarding the levy.