Trump Drops Proposed 20-Percent Fee on Hormuz Shipping for Gulf Investment Deals
US President Donald Trump announced on July 14, 2026, that the United States will pursue trade and investment deals with Gulf states instead of imposing a proposed 20-percent fee on shipping through the Strait of Hormuz, while maintaining a naval blockade that excludes Iranian vessels and cargo. [2]
Trump Replaces Hormuz Fee Proposal With Investment Deals
U.S. President Donald Trump said Tuesday that the United States will take investment deals with Gulf states instead of fees for ships passing through the Strait of Hormuz. [2] "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20 percent United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States," Trump said in a post on Truth Social. [2] The decision came one day after he proposed a 20-percent fee on shipping to reimburse the United States for protecting the key waterway. [2] Trump stated the decision followed productive conversations with Middle East leadership and replaces the reimbursement fee with investment deals into the United States. [2]
Blockade on Iranian Shipping to Continue
Trump said the Strait of Hormuz would remain open to all ship traffic except for Iran, while the naval blockade will continue. [2] "BY FAR, the Strait of Hormuz is open to ALL Ship traffic except for Iran," he said. [2] "We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo," he added. [2] The Strait of Hormuz will remain open to all ship traffic except for Iran, with a full blockade continuing on ships to and from Iranian ports or carrying Iranian cargo. [2]
Announcement Follows Brief Ceasefire Breakdown
Trump said he had formally notified Congress on Friday that the country had resumed military operations against Iran. [2] Fresh U.S. airstrikes and Iranian retaliation have plunged Washington and Tehran back into open conflict less than a month after signing a 14-point memorandum of understanding aimed at ending the war. [2] The announcement came one day after Trump proposed the 20-percent fee and follows his notification to Congress on Friday that the US had resumed military operations against Iran. [2] Fresh US airstrikes and Iranian retaliation have returned Washington and Tehran to open conflict less than a month after they signed a 14-point memorandum of understanding to end the war. [2]
Hormuz Emerges as Central Theater in US-Iran Conflict
The US-Iran conflict is increasingly focused on control of the Strait of Hormuz, with both sides using the strategic waterway for military and political leverage. [1] [2] US-Iran conflict converges on Hormuz. [1] The war between the United States and Iran is increasingly being fought over control of the Strait of Hormuz, with both sides using the strategic waterway as a source of military and political leverage. [1]
Trump Hosts Iraqi Prime Minister Amid Regional Talks
U.S. President Donald Trump (R) welcomes Iraqi Prime Minister Ali al-Zaidi at the White House in Washington, D.C., the United States, July 14, 2026. [2] Trump said Tuesday that the United States will take investment deals with Gulf states instead of fees for ships passing through the Strait of Hormuz. [2] U.S. President Donald Trump welcomes Iraqi Prime Minister Ali al-Zaidi (not in the picture) upon his arrival at the White House in Washington, D.C., the United States, July 14, 2026. [2]
What to watch next: The US-Iran conflict continues to converge on the Strait of Hormuz as both sides apply military and political leverage through the waterway.
