President Donald Trump said Gulf states will invest billions in the United States after he abandoned a proposed toll on the Strait of Hormuz [1].
The reversal marks a significant shift in U.S. maritime policy and regional diplomacy. By dropping the fee, the administration avoids a potential economic clash with Middle Eastern allies while securing promises of foreign capital investment.
Trump said the development during a meeting at the White House with Iraqi Prime Minister Ali al-Zaidi [2]. He described the expected investment from the Gulf states as a tremendous amount [1].
The policy shift followed the proposal of a 20 percent toll on ships passing through the Strait of Hormuz [3]. This narrow waterway is one of the world's most critical chokepoints for global oil shipments.
According to reports, the Hormuz toll was cancelled after one day [3]. Regional leaders persuaded Trump to drop the plan in favor of committing to investments within the U.S. economy [4].
While the president highlighted the investment agreement as the catalyst for the decision, some reports indicate the toll was cancelled shortly after its inception without a formal investment deal [5].
Trump said the outcome reflects a successful negotiation with regional partners. The meeting with Prime Minister al-Zaidi served as the backdrop for the announcement regarding the new financial commitments from the Gulf states [2].
“Gulf states will invest "billions" in the United States”
This move suggests a transactional approach to foreign policy, where the U.S. leverages the threat of economic penalties—such as maritime tolls—to secure direct financial investments. The rapid reversal of the 20 percent toll indicates that regional leaders viewed the fee as a critical threat to global trade stability, leading them to offer economic incentives to protect the Strait of Hormuz's status as a free passage.
