Trump walks back proposed 20% toll on Hormuz ships

What This is

• President Donald Trump said the U.S. will charge a 20% toll on cargo transiting the Strait of Hormuz and act as the waterway’s “guardian.”
• Trump later said he would drop the 20% toll and seek trade and investment deals with Gulf states instead.
• U.S. Central Command and other U.S. officials said a blockade of Iranian shipping and ports will be reinstated beginning Tuesday, alongside ongoing U.S. strikes on Iranian targets.
• Iran has rejected U.S. authority over the strait and has mocked or challenged the U.S. toll plan, while also asserting its own role in controlling traffic there.
• The International Maritime Organization has said mandatory transit tolls in the Strait of Hormuz have no legal basis under international law.
• European and Omani discussions have floated an IMO-linked “Malacca model” that could allow voluntary payments for safety services, instead of compulsory tolls claimed by one side.

Why This Matters

• The Strait of Hormuz is a core route for global oil, so even partial disruption can raise fuel prices far beyond the region.
• Fast policy reversals add uncertainty for shippers, insurers, and allies trying to judge what rules will apply day to day.
• A U.S.-run toll would weaken the long-standing idea that international straits stay open without pay-to-pass demands.
• Wider fighting around chokepoints can spread the war to nearby states and pull in armed groups, making de-escalation harder.