Trump drops 20% toll plan in Strait of Hormuz within 24 hours, opts for Gulf trade deals: “I decided to replace…” | Today’s news

Iran War Update: US President Donald Trump withdrew his 20% toll on cargo passing through the Strait of Hormuz on Tuesday, July 14, just 24 hours after it was announced. The US president instead stated that the toll would be replaced by investment from the Gulf states in the United States.

“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% fee to pay the United States with trade and investment agreements that various Gulf states are entering into with the United States,” Trump wrote on Truth Social moments before he was expected to meet with Iraq’s prime minister at the White House.

Trump announced on Monday that the fee would cover security on critical oil arteries provided by the US.

The president added that the investment commitments “are going to be MASSIVE,” although it remains unclear whether these are new pledges or a repackaging of agreements made during his visit to the Middle East last year.

President Trump has said he will continue a “TOTAL blockade” of ships coming to and from Iranian ports or carrying anything related to Iranian cargo.

Trump said on Monday that Washington is now the “GUARDIAN OF THE STRAIT OF HORMUZ” and will impose hefty fees on shipping to pay the United States to protect the key oil and gas pipeline.

Iran’s military command has insisted it will not allow the United States to “interfere” in the Strait of Hormuz, while warning its Gulf neighbors, which have borne the brunt of its retaliatory attacks, against cooperating with Washington.

READ DONALD TRUMP’S FULL SOCIAL POST

Oil is flowing like never before thanks to the awesome power of the United States military. Special tributes to Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine and Commander of United States Central Command Admiral Brad Cooper. Because of them and all members of the most powerful military anywhere in the world, the Strait of Hormuz is by far open to ALL shipping except Iran – and that is because of their lying, violent and malicious leadership that is leading them down a path of TOTAL DESTRUCTION. We will therefore have a FULL blockade, but only on ships coming to and from Iranian ports or carrying anything related to Iranian cargo. Based on highly productive conversations with Middle Eastern leadership, I decided to replace the 20% fee for the United States to pay for the trade and investment agreements that the various Gulf states will enter into with the United States. These investments will be MASSIVE but also extremely good for them and their future. As everyone knows, we have the largest dollar investment in the United States of any country in history, but these new investments will increase that number even further and we will see factories, plants and equipment flow into the United States at historic levels, creating millions more high paying AMERICAN jobs! America is WINNING again, winning like never before. The days of Iran killing hundreds of thousands of people, including 52,000 protesters, are OVER, and most importantly, IRAN WILL NEVER HAVE A NUCLEAR WEAPON! Thank you for your attention to this matter. President DONALD J. TRUMP

The reversal marks a rapid turnaround since Monday (13 July), when US President Trump proposed a 20% levy as compensation for US forces securing the Strait of Hormuz, one of the world’s most critical oil corridors. Trump named the United States as the protector of the strait and framed the charge as a matter of justice because of the security burden Washington was prepared to bear.

The announcement unsettled oil markets and reignited debate over the legality of tolling in international waters, an issue raised by senior administration officials themselves in previous weeks.

Rubio and Vance have already raised legal concerns

Trump’s own officials have previously questioned the toll’s feasibility. Secretary of State Marco Rubio said last month that such a fee would violate established maritime law.

“It’s an international waterway. No country is allowed to collect tolls or fees on an international waterway. That’s existing international law,” Rubio said.

Vice President JD Vance echoed this sentiment, insisting that “international waterways should be toll-free.” Trump himself struck a similar tone in May, long before the tolls went up.

“We want it open. We want it free. We don’t want tolls. It’s international. It’s an international waterway,” Trump said at the time.

Oil markets react to ongoing tensions with Iran

The now-abandoned 20% toll proposal was announced by Donald Trump along with the reimposition of the US naval blockade against Iranian ships in the Strait of Hormuz amid a rapidly escalating confrontation between Washington and Tehran. Oil prices jumped and stocks fell after the first announcement, which came as the US and Iran traded fresh blows.

After Tuesday’s decline, oil prices eased from earlier highs. West Texas Intermediate futures rose 23 cents to $78.37 a barrel, while Brent crude, the international benchmark, gained 65 cents to settle at $83.95.