Trump scraps threat of 20 % fee on Hormuz cargo as US prepares to resume blockade of Iran ports

What Happened

President Donald Trump reversed a threatened 20% fee on all cargo shipping through the Strait of Hormuz, announcing it would be replaced by trade and investment deals with Gulf states. Hours later, the U.S. was set to resume a naval blockade on Iranian ports as of 16:00 Eastern Time (20:00 GMT) on Tuesday, according to U.S. Central Command (Centcom). The moves followed a third consecutive night of U.S. strikes aimed at degrading Iran's ability to disrupt shipping in the strait, while Iran's state media reported blasts in several cities, including Bushehr—site of a nuclear power plant. Tehran claimed it had targeted U.S. military facilities in Bahrain and Jordan after earlier hitting two United Arab Emirates tankers. Shipping data showed traffic through the strait at a two-month low, and Brent crude prices rose sharply. Trump declared the U.S. the 'guardian' of the strait and said it remained open to all traffic except Iranian vessels.

Key Actors

Why It Matters

The Strait of Hormuz is a critical global energy chokepoint, through which about 25% of the world's oil and 20% of liquefied natural gas previously passed. A U.S. blockade and strikes escalate direct military confrontation with Iran, risking further disruption to oil markets and a potential wider conflict. Trump's shift from fees to trade deals signals a diplomatic overture to Gulf states, but the blockade tightens economic pressure on Iran while the U.S. asserts military control over the waterway.

Watch For

The U.S. naval blockade on Iranian ports took effect Tuesday at 20:00 GMT. Monitor its enforcement and any Iranian military response, including attacks on shipping or regional U.S. assets. Oil price volatility and changes in tanker traffic through Hormuz will indicate market assessment of risk. Trump promised 'massive' Gulf investment deals—concrete details may surface in coming days. Netanyahu's threat signals possible preemptive Israeli strikes if Iran retaliates, which could broaden the conflict.