President Donald Trump has announced the cancellation of his proposal for a 20% fee on U.S. protection of the Strait of Hormuz amid ongoing tensions with Iran. Instead, he stated on Tuesday that he will pursue trade and investment agreements with Gulf countries, as reported by Reuters.
Following three consecutive nights of U.S. military strikes, Trump reinstated a naval blockade on Iranian maritime transport after Tehran declared the strait closed. However, just hours before the fee was set to take effect at 20:00 GMT, Trump revealed that the strait would remain open to all vessels, except those from Iran.
“Based on extremely productive discussions with Middle Eastern leaders, I have decided to replace the 20% reimbursement fee to the United States with trade and investment agreements that various Gulf nations will finalize with us,” Trump explained in a post on Truth Social.
In his complete message, Trump stated: “Oil is flowing like never before, thanks to the incredible power of the United States military. A special shout-out to Secretary of War Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, and Central Command Chief Admiral Brad Cooper. Because of them and all members of the world’s strongest military, the Strait of Hormuz is open to ALL ships, except Iranian ones – due to their lying, violent, and malicious leadership, which leads to TOTAL DESTRUCTION. Therefore, we will implement a TOTAL blockade, but only on ships arriving in or departing from Iranian ports or transporting Iranian-related goods. These investments will be HUGE, yet extremely beneficial for them and their future. As everyone knows, we have the largest dollar investment in history in the United States from all countries, but these new investments will increase that number even more, bringing factories, plants, and equipment to the U.S. at historical levels, creating millions of additional HIGHLY PAID AMERICAN jobs! America WINS 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.”
Following his announcement, oil futures reduced gains after rising earlier on Tuesday.
Escalating attacks have raised doubts about the memorandum of understanding signed last month, which was expected to lead to a permanent ceasefire, disrupting global energy supplies and sparking fears of rising worldwide inflation.
In retaliation, Iran launched ballistic missiles at a U.S. military base in Jordan, while Bahrain, home to a U.S. naval base, reported having thwarted an Iranian airstrike. Jordan confirmed the interception of four ballistic missiles, with explosions heard in Manama, Bahrain’s capital.
Before the conflict, about one-fifth of the world’s oil and gas traffic passed daily through the Strait of Hormuz. Had the U.S. enforced the 20% fee, it could have generated approximately $240 million daily.
The UN maritime agency has stated its opposition to any fees for straits used in international navigation, asserting that there is no legal basis for implementing mandatory tariffs for transit through straits.
Trump Notifies Congress of New War Against Iran
President Trump officially informed U.S. lawmakers over the weekend that the United States is once again at war with Iran, granting his administration an additional 60 days to use military force in the region without congressional approval, as reported by Politico on Monday.
In a letter dated July 10 and obtained by the U.S. edition of Politico, Trump claimed the attacks that began on July 7 represent a military action in line with his responsibility “to protect American citizens and U.S. interests, both domestically and abroad.”
This intermittent war has proven challenging for Trump, as both nations vie for control of the strategically vital Strait of Hormuz, crucial for global energy supply. Trump has expressed frustration over the inability to reach a peace agreement with Iran, while Republicans are concerned about potential blame for high gasoline prices ahead of the midterm elections.
The notification to lawmakers followed Trump’s declaration that the two-month ceasefire with Iran has officially ended. The ceasefire, initially declared in April, has remained fragile amid frequent attacks from both sides, although the Trump administration has repeatedly insisted that large-scale war has not resumed, as noted by News.ro.
Officials from the U.S. Central Command (CENTCOM) stated that American military forces have struck over 300 Iranian military targets in the past week in response to ongoing hostilities from Tehran in the strait.
Previously, Trump had informed American legislators in May that the war initiated in February “has ended,” thereby canceling the legal 60-day deadline under which military operations must cease without congressional authorization. The ceasefire, which had taken effect at the beginning of April, was extended indefinitely, with the White House claiming this measure halted the ticking clock on presidential war powers.
However, opponents of the war on Capitol Hill argued that this rationale represents a misinterpretation of the law. They pointed out that the U.S. Navy continues to maintain a blockade designed to pressure Tehran, even though major military operations had been suspended.
The new notification is likely to complicate Congress’s ongoing efforts to end the war with Iran.
Last month, the Senate voted to cease hostilities, a largely symbolic action against the president, yet still a defeat for Trump, who has witnessed a gradual erosion of congressional support for his military commitments against Tehran.
The Senate vote, which passed 50 to 48, was enabled by four Republicans joining Democrats in opposing the war unless it received a green light from Congress. Their votes, combined with the absences of Senators Dave McCormick and Mitch McConnell, were sufficient to propel the war powers measure’s adoption.
This Senate action followed a similar successful vote in the House of Representatives, where four Republicans joined Democrats in calling for the cessation of military operations in Iran unless authorized by Congress, with a tally of 215 to 208.
However, the legal impact of these votes remains limited. The concurrent resolutions are legislative acts that have yet to be legally tested and are not sent to the president for enactment. Any measure that might restrict these presidential powers would almost certainly face a veto from the White House.
In the letter to Congress, Trump stated that American military forces “remain prepared to take additional actions, as necessary and appropriate, to address new threats and attacks against the United States or its allies and partners and to ensure that the Government of the Islamic Republic of Iran ceases to represent a threat to the United States and our allies and partners.”
