President Trump has reversed the fee burden and said regional countries would instead invest in the United States in exchange for transportation protections.
Published July 14, 2026
US President Donald Trump has walked back his claim that the US government would impose a 20% transit fee on ships passing through the Strait of Hormuz.
Tuesday’s reversal came just one day after President Trump announced the 20% fee as fighting between the United States and Iran continues to escalate.
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At the time, President Trump did not provide details of the fee, only telling Truth Social that it would be “reimbursement” for “all the costs necessary to do the work that provides safety and security in this very volatile part of the world.” The administration did not say how it would ensure safe navigation in international waterways not controlled by the United States.
In his latest statement, President Trump said the fees would instead be replaced by “trade and investment agreements that Gulf states enter into with the United States.”
He said the decision came after “very productive conversations with Middle East leadership.”
President Trump also asserted that the investment from Gulf countries would be “huge” but provided no further information. Before the United States and Israel went to war with Iran on February 28, several countries in the region had already announced multibillion-dollar investment commitments to the United States.
President Trump had previously suggested the United States could “dominate” the Strait of Hormuz and impose tolls, but Monday’s announcement was the closest sign that rhetoric could turn into policy.
The Trump administration has previously rejected the idea that Iran would impose fees on ships passing through, and US Secretary of State Marco Rubio has said doing so in international waterways would undermine international law.
President Trump appeared to return to that position Tuesday, telling reporters, “I don’t like the concept of fees.”
The US president spoke on Tuesday, hours before the US resumed its military blockade of Iran. The blockade had been lifted as part of a memorandum of understanding (MoU) signed by both sides in mid-June.
The preliminary agreement also promised an end to fighting between the two countries and the opening of the Strait of Hormuz, but is now at risk amid recent attacks.
Iranian media have reported recent attacks on the islands of Bushehr, Bandar Abbas, Mahashahr and Abadan, with explosions also reported on Tuesday on the islands of Qeshm and Kish.
Meanwhile, Kuwait said its military was engaging numerous air targets. Iran has vowed to continue its attacks on U.S. assets in the region, with other attacks reported against ships in Bahrain, Jordan, and the Strait of Hormuz.
