Trump Shifts Strategy on Hormuz Tolls Amid Escalating Iran Conflict

Donald Trump has scrapped a proposed 20% transit fee for ships passing through the Strait of Hormuz, opting instead for trade and investment deals with Gulf states. This policy reversal comes as U.S. forces launch new strikes against Iranian military targets and implement a naval blockade of Iranian ports, according to reports from ANSA and Associated Press.

Trade Agreements Replace Proposed Hormuz Transit Tax

Donald Trump announced via Truth Social that he is replacing the 20% “refund tax” on goods transiting the Strait of Hormuz with bilateral trade and investment agreements. The shift follows “extremely productive” discussions with Middle Eastern leaders, Trump stated. During a meeting in the Oval Office with the Iraqi premier Ali al-Zaidi, Trump explained that regional emirs had called him to suggest investing in the U.S. as an alternative to the tax.

The original proposal for a transit fee had conflicted with public stances held by the vice president Jd Vance and the secretary of State Marco Rubio, who both maintained that tariffs in international waters are illegal. Despite the pivot, Trump told the Fox News network that it remains “unfair” for Washington to protect the strait for the benefit of China and other nations.

U.S. Military Escalation and Port Blockade

The diplomatic shift coincides with a sharp increase in kinetic operations. A U.S. official told the Associated Press that the United States has launched new attacks on military objectives within Iran. This operation began just one hour after a naval blockade of Iranian ports took effect.

The Us Central Command confirmed the blockade is active, noting that 20 warships and hundreds of military aircraft are currently operating in the Middle East. The Us Central Command stated that American forces remain “vigilant, lethal, and ready.” In a separate interview with Fox News, Trump stated that attacks on Iran “continueranno finché non dirò basta,” specifically noting that power plants and bridges are targets for the coming week, while energy sector targets will be hit last.

Iranian Response and Maritime Attacks

Tehran has responded with cruise missile strikes and threats of “devastating” retaliation. The UAE Ministry of Defense reported that Iranian cruise missiles hit two tankers, the Mombasa and the al-Bahiyah, in Omani territorial waters. The attack on the Mombasa killed one Indian crew member and injured eight others.

Further maritime incidents include an attack on the Stolt Magnesium, a tanker owned by Norwegian company Stolt-Nielsen, which reported a fire in its engine room in the Arabian Sea. Meanwhile, Iran’s state broadcaster, Irib, cited an anonymous military source claiming the Iranian Navy targeted a “hostile” U.S. ship and strategic U.S. military sites in Kuwait. The pasdaran also claimed hits on U.S. sites in Jordan, Bahrain, and Oman.

Economic Impact and Energy Market Volatility

The escalation has triggered a spike in global energy prices. WTI crude rose by 2.85%, exceeding $80 per barrel.

While Trump claimed that oil “flows like never before” and that the strait remains open except for blocked Iranian ports, market data suggests the conflict is creating significant pricing pressure. Iran’s Foreign Ministry spokesperson, Esmaeil Baghaei, warned that Tehran may exit existing memoranda of understanding if the U.S. fails to meet its commitments.

Strategic Summary of Current Escalation

The conflict now hinges on whether the U.S. follows through with threats to strike the Pickaxe Mountain nuclear site, a move Tehran warns would result in heavy casualties for American soldiers and regional partners.