Trump reverses decision to impose 20% Hormuz fees in favour of Gulf investment deals

Ongoing military confrontation across the Gulf region

After Tehran said it had closed the strategic waterway, the US military continued its wave of attacks for the third night in a row. Iran is also retaliating with strikes at US bases in the Gulf countries, including Bahrain, Kuwait, and Oman, among others.

“Do you have any regrets about lifting the naval blockade or giving the sanctions waivers?”@POTUS: “No. I gave them a chance. I wanted to give them a chance at making a deal… and they shot first, and that was a big mistake that they shot first—because we have been knocking… pic.twitter.com/AdG8IZnOJa

— Rapid Response 47 (@RapidResponse47) July 14, 2026

White House restricts navigation terms for Tehran

Just five hours before the toll in Hormuz was set to take effect at 8 pm (GMT), Trump said the strait was open to all for ship transit except that of Iran, adding that the US military’s naval blockade of the Islamic Republic would continue.

.@POTUS: “The Gulf States are going to invest a tremendous amount of money into the United States, and that was very satisfactory to me. I think it’s actually much better.” https://t.co/gSgGloeM4A pic.twitter.com/Wm0IRreSOS

— Rapid Response 47 (@RapidResponse47) July 14, 2026

Trump’s post outlines trade and investment deals

“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States,” Trump wrote in a post on Truth Social.

Economic consequences of the prolonged maritime crisis

The increasing violence and exchange of fire between the two nations have raised doubts about whether the memorandum of understanding signed last month would lead to a permanent pause in the conflict, which has disrupted the global supply chain of energy and raised fears of enhanced inflation.

Regional defense systems engage incoming projectile fire

Retaliating to American attacks, Iran hit back with ballistic missile strikes at the US Army base in Jordan, while Jordan, which also houses a US naval base, said that it was successful in eliminating an Iranian aerial attack.

Jordan added that it shot down four Iranian ballistic missiles, and explosions were heard in Bahrain’s capital, Manama.

About 20 per cent of global oil and gas was transiting through the Strait of Hormuz before the war in Iran broke out. If the Trump administration had continued with its 20 per cent fee on every cargo shipped through the strait, it could have generated around $240 million a day, Reuters reported.