US President Donald Trump has abandoned a plan to impose a 20% fee on oil shipments through the Strait of Hormuz, opting instead to strike deals with Gulf states. This was reported by Qazaqyia.kz citing Reuters.
Initially, the Trump administration proposed a 20% fee on oil tankers passing through the Strait of Hormuz. However, the plan faced international criticism and was later scrapped. Instead, the White House plans to ensure regional security through bilateral agreements with Gulf states.
The decision is aimed at reducing the US military footprint in the region and strengthening cooperation with local allies. The Trump administration stated that working with regional partners would ensure free navigation in the Strait of Hormuz.
The Strait of Hormuz is a crucial passage for about 20% of global oil shipments. Dropping the fee plan could help stabilize oil prices.