President Donald Trump announced he will not impose a 20% [1] toll on cargo ships transiting the Strait of Hormuz.
The reversal is significant because the Strait of Hormuz is a critical global chokepoint for energy shipments. Any additional costs or instability in the waterway between Oman and Iran could trigger global economic volatility, and escalate diplomatic tensions between the U.S. and Iran.
Trump dropped the proposal on Tuesday, June 11, 2024 [2]. The original vow to implement the fee lasted only 24 hours [3] before the administration decided to backtrack.
"We will not be charging a 20% toll on ships passing through the Strait of Hormuz," Trump said [4].
White House officials linked the decision to the volatility of the energy market. A White House spokesperson said oil prices had surged back above $80 per barrel [5], which prompted the administration to reconsider the toll proposal.
Beyond the impact on oil prices, the administration expressed concerns that the fee would further inflame tensions with Iran. To offset the potential loss of revenue or strategic leverage, Trump pledged that the U.S. would instead secure large investments from Gulf states [6].
This policy shift comes as the U.S. prepares to resume a blockade of Iranian ports [7]. By removing the cargo toll, the administration appears to be balancing a hardline stance on Iranian port access with a desire to prevent a wider spike in global shipping costs and energy prices.
“"We will not be charging a 20% toll on ships passing through the Strait of Hormuz."”
This reversal demonstrates the high sensitivity of U.S. foreign policy to global energy markets. While the administration seeks to maintain pressure on Iran through port blockades, the threat of a cargo toll proved untenable once oil prices crossed the $80 threshold, as the economic cost to global trade would likely outweigh the political gains of the fee.
