Trump drops proposed 20% Hormuz transit fee, shifting to Gulf investment deals as blockade on Iran set to resume

President Donald Trump has backed away from a proposed 20% fee on vessels transiting the Strait of Hormuz, replacing the idea with what he described as forthcoming trade and investment deals from Gulf states after "highly productive conversations with Middle East leadership." The reversal came a day after Trump framed the charge as reimbursement for U.S. security costs in the waterway and after earlier comments from White House senior adviser Kevin Hassett that a 20% cargo ship fee was under consideration. Trump said he does not "like the concept of a fee," returning closer to the administration's earlier position that charging for passage through an international waterway would undermine international law. Secretary of State Marco Rubio had previously rejected the idea of Iran imposing such fees. Trump had also floated taking "control" of the strait and charging tolls, making Monday's proposal the clearest sign yet that the rhetoric might become policy before Tuesday's reversal. The policy shift came as shipping through the waterway had already been under pressure. Kpler data previously cited by BlockBeats showed vessel traffic through the Strait of Hormuz fell about 52% year over year from July 10 to 12, while CNBC cited Kpler data showing only 14 ships crossed on Sunday, including four crude tankers, down from 37 a week earlier. BIMCO said traffic had again largely ground to a halt in recent days, and shipping executives warned that any added levy could further discourage transits. Trump spoke hours before a U.S. military blockade of Iran was set to restart after having been lifted under a mid-June memorandum of understanding that also paused fighting and reopened the strait. That preliminary arrangement has come under renewed strain as attacks were reported in Bushehr, Bandar Abbas, Mahshahr and Abadan, with explosions also reported on Qeshm and Kish islands. Kuwait said its armed forces were engaging with a number of aerial targets, while Iran vowed to continue attacks on U.S. assets in the region, with other attacks reported on Bahrain, Jordan and on vessels in the Strait of Hormuz.