Trump Reverses Plan for Strait of Hormuz Transit Fees, Announces Trade Deals Instead

U.S. President Donald Trump has canceled a proposed 20% fee on ships crossing the Strait of Hormuz and will pursue trade agreements with Gulf states.

• Trump announced the cancellation of the 20% transit fee on Tuesday, replacing it with commercial and investment agreements with Gulf states.
• Trump stated that no country should impose fees on the strait and that the new plan is "much better."
• Secretary of State Marco Rubio had previously said that no country has the right to charge fees on international waterways.
• Shipping traffic through the Strait of Hormuz has fallen to about 10 ships per day, down from 130 before the war.