U.S. President Donald Trump reversed his decision on July 14 (local time) to collect a 20% transit fee on cargo from commercial vessels passing through the Strait of Hormuz, just one day after announcing it.
President Trump stated on his social media platform, Truth Social, that "based on very productive conversations with Middle Eastern leaders, I have decided to replace the 20% U.S. compensation fee with trade and investment agreements that various Middle Eastern countries will sign with the United States."
The president had unilaterally declared the previous day on Truth Social that, in exchange for the U.S. military guaranteeing the safe passage of commercial vessels through the Strait of Hormuz, he would collect a 20% fee based on the value of the cargo on board. He has now overturned this policy after only one day.
The initial plan was to collect the fee as compensation for the U.S. military, stationed around the Strait of Hormuz, ensuring the safety of merchant ships by blocking attacks from Iranian forces.
This move drew backlash from the international community, particularly from Middle Eastern nations that effectively export energy to the entire world through the Strait of Hormuz.
President Trump stated, "These investments will be massive, but at the same time, they will be tremendously good for them (Middle Eastern countries) and their future."
He emphasized, "As everyone knows, we have the largest investment in the U.S. dollar in history, but with these new investments, that figure will grow even larger, and factories, production facilities, and equipment will pour into the United States at historic levels, creating millions of additional high-paying jobs."
Following his remarks from the previous day, President Trump also claimed, "Thanks to the incredible power of the U.S. military, oil is flowing more smoothly than ever," adding that "the Strait of Hormuz is open to all vessels except those from Iran."
This refers to the maritime blockade against Iran that the U.S. military has decided to resume in the Strait of Hormuz.
The U.S. Central Command is set to block all vessels traveling to and from Iranian ports and coasts starting at 4:00 PM Eastern Time today (5:00 AM KST on July 15) to further tighten the squeeze on Iran's financial lifelines.
President Trump explained, "The reason Iranian transit is prohibited is because of their lies, violence, and malicious leadership, which is leading Iran down a path of total ruin. Therefore, we will implement a full blockade, but this only applies to vessels traveling to and from Iranian ports or those transporting goods related to Iranian cargo."
President Trump also stated, "The era when Iran killed hundreds of thousands of people, including 52,000 protesters, is over, and above all, Iran will never possess nuclear weapons."