U.S. Imposes Reimbursement Fee on Strait of Hormuz Cargo

President Donald Trump has announced a 20% “reimbursement fee” on all cargo passing through the Strait of Hormuz, following the recent breakdown of the ceasefire between the U.S. and Iran. This fee aims to cover the costs associated with U.S. naval protection for vessels in the region.

However, just hours before this fee was set to take effect, the president changed his course of action via a post on Truth Social.

On Tuesday, Trump stated that after “very productive conversations” with leaders from the Middle East, he decided to reduce the fee. He highlighted the significance of discussions with various rulers, indicating that the Gulf Arab states had reached a “major” trade and investment agreement with the U.S.

“Based on these productive conversations, I have chosen to replace the 20% fee with a trade and investment agreement,” Trump stated. “These investments are expected to be significant and beneficial for both sides.”

“As we know, our country is set to make the largest dollar investment in American history. And these new investments will amplify that, bringing in more resources and creating millions of jobs!” he went on to say. “America is winning again—like never before.”

Along with the fee announcement, Trump reiterated the reinstatement of a U.S. naval blockade on Iranian ports, asserting that the Strait of Hormuz remains open for vessels not linked to Iran.

“The Strait of Hormuz is accessible for all ships apart from those associated with Iran due to their deceitful and aggressive leadership,” Trump explained. “Thus, we will enforce a complete blockade, but only concerning ships entering or leaving Iranian ports or carrying Iranian cargo.”

U.S. Central Command (CENTCOM) confirmed that this blockade is officially set to commence at 4 PM ET on Tuesday.

In a recent social media update, CENTCOM denied assertions that Iran dominates the Strait of Hormuz, insisting that passage through it remains free and unobstructed. They also pointed out that over the last few months, a significant quantity of oil and vessels has traversed critical maritime routes.

“The U.S. military has facilitated the transport of over 800 ships and more than 400 million barrels of crude oil in the last two months,” said CENTCOM. “In the previous week alone, over 140 ships have passed through the Strait.”

Following recent escalations in the conflict, oil prices have seen another spike, rising from $68 to $79 per barrel over the past week. Nevertheless, this figure is still significantly lower than April’s peak of $112 per barrel. Consumers are noticing a slight uptick in gas prices, averaging around $3.85 per gallon as of Monday.