Trump scraps threat of 20% fee on Hormuz cargo as US resumes blockade of Iran ports
BBC News 2026-07-14 20:10:37
Context: The United States and Iran are engaged in a heightened conflict over control of the Strait of Hormuz, a critical waterway through which a significant portion of the world's oil and liquefied natural gas passes. President Donald Trump had threatened to impose a 20% fee on all cargo shipped through the strait, but has since reversed this decision, opting instead for "massive" trade and investment deals with Gulf states. The US has resumed its blockade of Iranian ports, leading to a sharp rise in oil prices and a slowdown in tanker traffic through the strait.
Key Facts
- The US Central Command (Centcom) launched an additional round of strikes against Iran to degrade its capabilities used to attack commercial shipping in the Strait of Hormuz, following renewed strikes between the US and Iran.
- President Trump declared the US to be the "guardian" of the Strait of Hormuz and initially vowed to impose a 20% charge on all cargo shipped through the waterway to pay for protecting it, but later replaced this plan with a proposal for "massive" trade and investment deals with Gulf states.
- The Strait of Hormuz is a critical waterway through which approximately 25% of the world's oil and 20% of global liquefied natural gas passes, and Iran's control of the strait allows it to threaten the global economy.
- The US first imposed a naval blockade of all Iranian ports in April, which was later lifted in June as part of a deal between the two countries, but the dispute over the strait has become a key point of contention.
- Shipping data shows that traffic through the Strait of Hormuz has slowed to a two-month low, and the benchmark Brent Crude oil price has risen sharply in response to the ongoing conflict.