President Donald Trump on Tuesday announced to replace his plan to charge 20% fee for facilitating Hormuz shipping with investment deals the Gulf states will reach with the United States, as the Iran conflict escalated.
In a post on Truth Social, Trump announced that the waterway would remain open to all commercial shipping except Iranian vessels.
“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.
The fee proposal had followed Tehran’s announcement that it had closed the Strait of Hormuz, prompting Washington on Monday to reimpose a naval blockade on Iranian shipping. US forces also carried out a third consecutive night of strikes on Iranian targets.
“It’s open if people want to go through it … It’s closed for Iran.”
President Trump outlines his plans for the Strait of Hormuz during an exclusive interview with @TreyYingst on @SpecialReport.
The president discusses one of the world’s most critical shipping lanes as… pic.twitter.com/jJNzQBuhDF
— Fox News (@FoxNews) July 14, 2026
New attacks reported in Iran
Iranian state media said a U.S. projectile struck Qeshm Island, located in the Strait of Hormuz, at around 7pm local time on Tuesday.
Separately, the semi-official Tasnim news agency reported that another U.S. projectile exploded near a water and electricity facility on Kish Island. State media also reported an explosion in Andimeshk in Khuzestan province.
Iran earlier retaliated by launching ballistic missiles at a US military base in Jordan, while Bahrain, home to a major US naval base, said it intercepted an Iranian aerial attack.
Jordanian authorities said they had shot down four ballistic missiles. Explosions were also reported in Bahrain’s capital, Manama.
In Kuwait, the armed forces said they were engaging “hostile” aerial targets, while the state news agency reported air raid sirens sounding across parts of the country.
The renewed attacks have cast doubt on whether a memorandum of understanding signed last month could still pave the way for a lasting ceasefire in a conflict that has disrupted global energy markets and heightened inflation concerns worldwide.
President Trump said Tuesday he changed his mind on charging 20% Strait of Hormuz cargo fees after many countries called him.
“I was called by different people, different countries, kings and emirs,” Trump said shortly after announcing the fee reversal. “And they’ve said, ‘We’d… pic.twitter.com/8IaHfltzKT
— CBS News (@CBSNews) July 14, 2026
Shipping industry opposed fee proposal
Trump’s proposed Hormuz transit fee had drawn swift opposition from the international shipping industry.
The UN’s maritime agency said there was no legal basis for mandatory tolls on international straits and opposed any such charges. Germany’s Hapag-Lloyd, the world’s fifth-largest container shipping company, described the proposal as “fundamentally wrong.”
Later on, Tuesday, Trump acknowledged that he was uncomfortable with the idea of charging ships to use the waterway, saying several countries had instead expressed interest in investing in the United States.
It remained unclear whether Gulf states had made any formal investment commitments. Trump offered no details, saying only that the investments would be “massive” and mutually beneficial.
Oil prices climb
Oil prices rose about 2pc on Tuesday, reaching their highest level in a month after the U.S. tightened pressure on Iranian shipping and fighting between Washington and Tehran intensified, raising concerns over global energy supplies.
Before the conflict, roughly one-fifth of the world’s oil and liquefied natural gas shipments passed daily through the Strait of Hormuz. Analysts estimated that the proposed 20pc transit fee could have generated about $240 million per day.
Diplomatic efforts continue
Despite the escalating violence, regional analysts said both sides still appeared to be operating within controlled limits while seeking leverage ahead of possible negotiations, although the risk of wider conflict remained.
The conflict has also become increasingly unpopular in the United States as higher fuel prices weigh on consumers ahead of November’s congressional elections.
The latest war began after US and Israeli strikes on Iran on Feb 28, triggering Iranian attacks on Israel and Gulf states hosting US military bases. The fighting also reignited clashes between Israel and Hezbollah in Lebanon, leaving thousands dead and millions displaced.
Meanwhile, Lebanon and Israel resumed talks in Rome on Tuesday, with Beirut seeking progress towards securing a full Israeli withdrawal from southern Lebanon under a US-brokered agreement.
Muhammad Luqman is Associate Editor at Views News Now. He writes on wide-ranging issues including economy, South Asia, the Middle East, agriculture, economy and innovation. Luqman has worked some of the leading news organizations and won acclaim for his original and research-based works.
Kiran Asim is a writer who covers the U.S., Europe, South Asia, and the Middle East. Her reports and analyses look at the geostrategic issues and contemporary developments and their economic and political implications. She also writes about society and education.
