United States President Donald Trump has retracted his recent announcement to impose a 20 percent transit fee on vessels passing through the Strait of Hormuz. The reversal, announced on Tuesday, July 14, 2026, came just a day after Trump initially proposed the fee amid escalating conflict between the US and Iran.

Trump had originally described the fee on his platform Truth Social as a reimbursement for the costs of ensuring safety and security in the volatile Strait of Hormuz region. However, in a subsequent statement, he clarified that the fee would be replaced by "Trade and Investment Deals that the various Gulf States will be making with the United States."

He attributed this change in approach to "highly productive conversations with Middle East leadership." Prior to the outbreak of war between the US, Israel, and Iran on February 28, several countries in the region had already pledged multibillion-dollar investments in the US.

The announcement comes amid ongoing military actions, including US strikes on Iran and threats targeting Iran's nuclear facility known as Pickaxe Mountain.

Sources