The US resumed its blockade on Iranian shipping and launched fresh military strikes on targets near the Strait of Hormuz and Iran’s coastline
President Donald Trump has withdrawn his proposed 20% fee on cargo ships passing through the Strait of Hormuz, just one day after announcing it.
Gulf allies, including Saudi Arabia, Qatar, the United Arab Emirates, Bahrain, and Kuwait, urged him to replace the charge with investment agreements instead.
Trump said that upcoming investments from Gulf nations would make up for the expected revenue shortfall, though he did not reveal the value or the participating countries.
Trump’s toll proposal drew criticism from experts, who questioned its feasibility, while a UN agency said it was illegal.
Meanwhile, the United States resumed its blockade on Iranian shipping and launched fresh military strikes on targets near the Strait of Hormuz and Iran’s coastline. US officials said the operation aimed to weaken Iran’s ability to threaten commercial shipping in the vital waterway.
The Strait of Hormuz handles nearly one-fifth of the world’s oil trade, making it critical to global energy supplies.
Oil prices climbed sharply as tensions escalated between the US and Iran, raising concerns about fuel costs and regional stability.