U.S. President Donald Trump has withdrawn his proposal to impose transit fees on ships using the Strait of Hormuz, opting instead for investment commitments from Gulf nations, even as renewed military exchanges between the United States and Iran have shattered an interim peace arrangement and reignited concerns over global energy supplies and maritime security.
Speaking at the White House on Tuesday, Trump said Gulf leaders had proposed an alternative to the previously announced plan to charge vessels fees equivalent to 20% of their cargo value to help cover the cost of securing the strategic waterway.
“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,” Trump told reporters, adding that he preferred investments over transit charges because “I don’t think anybody should be able to charge a fee for the strait.”
The reversal comes just a day after the U.S. announced plans to reimpose a blockade on Iranian ports while introducing the proposed shipping levy. Although the transit fee plan has been shelved, the blockade is expected to take effect shortly.
Renewed conflict ends fragile truce
The development follows the collapse of an interim peace agreement that had briefly eased tensions after months of conflict in the Gulf. The accord was intended to reopen the Strait of Hormuz—a vital maritime corridor through which around one-fifth of global crude oil and liquefied natural gas trade passes—and create space for negotiations toward a permanent settlement.
Instead, renewed hostilities have once again engulfed the region.
According to U.S. officials, American forces launched another wave of strikes targeting Iranian military infrastructure ahead of the planned blockade. The U.S. Central Command (CENTCOM) said the attacks targeted coastal defence systems, missile and drone sites, and maritime capabilities.
“These strikes will continue imposing a heavy cost on Iranian forces and degrade their ability to attack innocent civilians and commercial shipping in the Strait of Hormuz,” CENTCOM said in a statement.
Iran acknowledged the strikes but did not immediately release details on casualties or damage.
Iran retaliates with attacks on shipping
Iran responded by launching attacks targeting Bahrain, Kuwait, Jordan and commercial vessels transiting the Strait of Hormuz.
The International Maritime Organization (IMO) reported that two tankers—Mombasa and Al Bahiyah—were attacked, resulting in the deaths of two seafarers and injuries to 14 others. Both vessels reportedly had links to the United Arab Emirates, prompting the UAE to warn of possible retaliation.
Dutch tanker operator Stolt Tankers also confirmed that its vessel Stolt Magnesium came under attack off the coast of Oman. The incident triggered a fire in the vessel’s engine room, although all crew members were reported safe.
Iran’s Islamic Revolutionary Guard Corps claimed the tankers had ignored repeated warnings while transiting a shipping route outside Iranian territorial waters near Oman.
Shipping and aviation face renewed risks
The latest escalation has renewed concerns over the safety of one of the world’s most critical maritime trade corridors.
Since the outbreak of hostilities earlier this year, attacks on commercial shipping have disrupted global supply chains, driving up prices of crude oil, fertilisers and other commodities. Security analysts warn that any attempt to fully reopen the Strait of Hormuz by military force would require a significantly larger international deployment than currently in place.
The renewed conflict has also affected regional aviation. The European Union Aviation Safety Agency (EASA) has advised airlines to avoid the airspace over Bahrain, Kuwait, Qatar, the United Arab Emirates and the Gulf of Oman due to heightened security risks.
The latest developments underscore the growing uncertainty facing global shipping, energy markets and regional trade as military confrontation between Washington and Tehran intensifies once again.
