Trump Drops Hormuz Toll Plan, Turns to Gulf Trade Deals

President Donald Trump said he was dropping the proposed 20% transit toll on vessels passing through the Strait of Hormuz and would instead pursue trade and investment agreements with Gulf states.

The decision reverses the earlier threat to tax oil shipments through the strategic chokepoint. The toll plan had drawn criticism from Gulf allies and raised concern among crude buyers. Trump's new approach aims to secure economic cooperation without disrupting oil flows through the waterway, which handles about a fifth of global supply.

No details on the trade deals were provided. The shift reduces near-term risk of a sudden spike in tanker rates or insurance costs tied to the Hormuz passage.