Trump Cancels 20% Fee Plan On Hormuz Transits For Direct Trade Deals With Gulf Countries

U.S President Donald Trump had called America the ‘Guardian of the Hormuz Strait’ and announced a 20% fee on all cargo ships sailing through the critical waterway. However, just one day after making the statement, Trump cancelled the plan to charge a fee.

He posted the same on Truth Social, where he wrote that after engaging in negotiations with the Middle East Leaders, he would instead focus on signing direct trade and investment agreements with Gulf allies, which would profit both the U.S and the Gulf nations.

However, he did not detail any specific commitments from the Gulf States, stating only that the investments will be massive and good for their nations’ futures.

Shortly after Trump had proposed the fee plan, the IMO opposed it but added that it would wait for more information on what Trump actually had in mind.

Trump also announced that the U.S has reimposed the naval blockade of Iranian Ports and said that the waterway is open to all except Iran.

The ceasefire between the U.S and Iran seems to be over after both countries attacked each other in the past week, including attacks on atleast 7 commercial ships in the last week.

According to reports, Iran claimed responsibility for targeting the vessels since they took an unauthorised route close to the coast of Oman for crossing the Strait of Hormuz, which Iran says it has the natural right to control.

The energy corridor, which handles a fifth of the world’s oil and gas, has become the point of contestation between the U.S and Iran.

Both countries are unable to reach a consensus regarding their management and control.

While the U.S says it should be treated as an international waterway and remain open to all for navigation and trade, Iran believes only it has the right to control and manage the waterway along with Oman since both countries’ borders touch the Strait.