President Trump Drops 20% Hormuz Fee Plan, Favors Gulf Investment in US
By the Media Line Staff
US President Donald Trump backed away Tuesday from his proposal to charge a 20% fee on cargo passing through the Strait of Hormuz, saying he instead favored Gulf leaders investing in the United States and arguing that no country should collect fees for passage through the waterway.
President Trump said he reconsidered the proposal after receiving calls from “kings and emirs” and other leaders who offered an alternative to the transit charge.
“They said we’d love to do it a different way. We’d love to invest in the United States with billions and billions of dollars,” President Trump told reporters in the Oval Office on Tuesday.
The investment proposal was preferable to collecting tolls “because I don’t think anybody should be able to charge a fee for the Strait,” President Trump added.
US officials have said throughout the conflict that ships should be able to pass through the Strait of Hormuz without paying transit charges. That stance contrasts with Iran’s proposal to collect fees from vessels using the strategic waterway.
Tehran has described its proposed charges as “service fees” rather than official “tolls.” Iran says the payments would cover maritime security, environmental protection and vessel management.
It remains unclear whether the investments discussed by the leaders who contacted President Trump would represent new financial commitments or agreements already announced following the president’s visit to the Middle East last year.
President Trump’s remarks came as the United States and Iran exchanged fire for a third night.
The renewed fighting followed an impasse in discussions over a memorandum of understanding intended to end the conflict that began in late February.
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