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Trump drops planned 20% Hormuz cargo fee ahead of Iran port blockade
BBC Business reports the reversal came hours before the US planned to resume its blockade, as strikes have stalled tanker traffic and helped push Brent higher.
President Donald Trump reversed a threat to charge a 20% fee on all cargo shipping through the Strait of Hormuz, saying the planned toll would be replaced by trade and investment deals with Gulf states, according to BBC Business.
The move landed just hours before the US planned to resume a naval blockade on Iranian ports. US Central Command said the blockade would begin at 16:00 Eastern Time on Tuesday, after renewed strikes between the US and Iran that have sharply raised oil prices as tanker traffic through the strait has virtually stalled.
BBC Business said the ongoing exchanges highlight the Strait of Hormuz's strategic role, with Iran accusing the US of interfering in its management of the waterway. The outlet also noted that Iran reported blasts in multiple cities, including Bushehr, and said it targeted US military facilities in Bahrain and Jordan after hitting two United Arab Emirates tankers.
Shipping data cited by BBC Business showed traffic through the Strait slowed to a two-month low, while Brent crude rose sharply. The article also said tanker activity was further constrained as Iran effectively shut down the waterway through which some commercial oil flows globally.
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