Trump Drops Proposed Strait of Hormuz Toll After International Pushback

President Donald Trump has backed away from a proposal to impose a 20% toll on cargo traveling through the Strait of Hormuz after Gulf allies and members of his administration urged him to reconsider.

Trump announced the proposal Monday, declaring on Truth Social that the United States would become the "Guardian of the Hormuz Strait" and charge a toll on all cargo moving through the vital shipping route.

The announcement surprised U.S. allies in the Middle East as well as many administration officials, according to sources familiar with the discussions. Advisers had reportedly warned for months that such a policy could undermine U.S. objectives in the region, raise global energy prices, and contradict longstanding U.S. opposition to countries charging fees for passage through international waterways.

Following the announcement, White House officials worked to determine how such a toll would be implemented, including who would pay the fees and how they would be collected. At the same time, leaders from Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar reportedly contacted Trump in an effort to persuade him to abandon the plan.

By Tuesday morning, Trump announced he would no longer pursue the toll after Gulf leaders instead pledged additional investments in the United States.

“I put it out yesterday, I thought it was good,” Trump told reporters. “I was called by different people, different countries, kings and emirs... and they said we'd love to do it a different way.”

A White House official said the president had considered the toll as a way to reimburse the United States for protecting commercial shipping through the strategic waterway but ultimately preferred the investment commitments offered by Gulf allies.

The Strait of Hormuz remains one of the world's most important shipping lanes for oil and natural gas. Ongoing conflict involving Iran has disrupted traffic through the strait and contributed to higher global oil prices.

Critics of the proposal also noted it appeared to conflict with the administration's previous position. In late June, Secretary of State Marco Rubio said international law does not permit countries to charge tolls or fees for passage through international waterways, a position the United States reaffirmed in a joint international statement.

Iranian Foreign Minister Abbas Araghchi responded to Trump's proposal by suggesting that countries providing security in the Strait of Hormuz should be compensated, though he argued a 20% toll would be excessive.

Originally reported by Adam Cancryn, Kevin Liptak, Kaitlan Collins, CNN.