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US President Donald Trump on Tuesday abruptly scrapped a planned 20 percent levy on ships transiting the Strait of Hormuz amid clashes with Iran, saying he would instead seek compensation from Gulf allies via trade deals.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump said on his Truth Social network.
He said he would continue with a “FULL Blockade” on ships coming to and from Iranian ports, set to restart at 2000 GMT Tuesday, or ships carrying anything have to do with Iranian cargo.
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Tehran largely closed the narrow Strait of Hormuz, a key global waterway for oil and gas, after the United States and Israel attacked Iran on February 28.
It began to reopen after a ceasefire deal in June, but has once again become the focus of military action after the truce effectively broke down last week.
Trump had declared on Monday that Washington was now “THE GUARDIAN OF THE HORMUZ STRAIT” and would impose hefty fees on shipping to reimburse it for protecting it — while giving few details of the plan.
That announcement caused oil prices to spike and alarmed allies — especially given that the United States has previously slammed Iran for its own plans to charge shipping fees for the Strait.
But the US leader said on Tuesday that he had changed his mind after speaking to Saudi Arabia, the United Arab Emirates, Qatar, Bahrain, and Kuwait.
“I put it out yesterday, I thought it was good. I was called by different people, different countries — kings, emirs, and all of the people that we all know and we all love,” Trump told reporters as he hosted Iraq’s new prime minister in the Oval Office.
“They said we’d love to do it a different way. We’d love to invest in the United States, with billions and billions of dollars…. And I like that, actually, because I don’t think anybody should be able to charge a fee for the Strait.”
Trump added that it was “unfair that we’re not in somehow compensated.”
Iran’s military command had insisted it would not allow the United States to “interfere” in the strait, while also warning its Gulf neighbors — who have borne the brunt of its retaliatory attacks — against cooperating with Washington.
It is far from the first time that the mercurial Trump, 80, has walked back a harsh announcement on trade, having last year eased global tariffs after markets quaked.
Traders have dubbed the phenomenon “TACO” — short for “Trump Always Chickens Out.”
President of United States, Donald Trump, has again criticised European nations for their lack of support in the US-Israel fight against Iran.
During a meeting with NATO chief, Mark Rutte on Wednesday in the Oval Office of the White House, Trump expressed his dissatisfaction that NATO alliance members did not participate in the military efforts.
“We didn’t need assistance on this at all. We defeated them in literally the first week,” Trump said regarding Iran.
“However, it would have been appreciated if they had expressed a desire to assist. We didn’t even require it, but it would have been nice if they had offered.”
Trump, who has openly contemplated reducing the United States’ involvement in the transatlantic alliance, indicated that he would further address this issue with Rutte in a private discussion.
“We’re going to be discussing what transpired, and we’ll see what unfolds,” he stated.
The US President has often voiced his disappointment that European countries did not contribute more to the US efforts in its conflict with Iran, which triggered weeks of turmoil throughout the Middle East and reverberated through the global economy.
Rutte’s visit to the Oval Office occurs at a pivotal moment, as NATO is scheduled to conduct its annual summit in Ankara, the capital of Turkiye, in approximately two weeks on July 7.
Rutte is generally perceived as sympathetic to Trump, and critics interpret his visit to the White House as an effort to placate the US president.
