President Donald Trump said on Tuesday he was withdrawing from imposing a 20% tariff on commercial ships passing through the Strait of Hormuz.
On Tuesday President Donald Trump announced that he will replace the 20% tariff on shipping through the Strait of Hormuz with the “Trade and Investment Agreements” that the Gulf nations will make with the United States.
Trump said the move came as oil and natural gas shipments have slowed along the waterway, a critical, narrow passage for commercial shipping contested by Washington and Tehran.
“Oil is flowing like never before, thanks to the incredible power of the United States Army,” Trump wrote on Truth Social. “The Strait of Hormuz is open to ALL shipping except Iran – and that is because of their lying, violent, brutal leadership, which is taking them down the path of TOTAL DESTRUCTION.”
OIL PRICES DIFFER AS TRUMP IRAN MAY FULLY WITHDRAW HORMUZ DEAL
President Donald Trump gestures as he participates in a bilateral meeting with Iraqi Prime Minister Ali al-Zaidi (not pictured) in the Oval Office of the White House in Washington, DC. (Reuters / Reuters)
However, Trump has said he will restore the sanctions on Iran.
“So we will have a FULL Blockade, but only on ships coming to or from Iranian ports, or carrying anything related to Iranian goods,” he added. “Based on very productive discussions with the leadership of the Middle East, I have decided to replace the 20% Reimbursement of the United States with the Trade and Investment deals that the various Gulf States will be making with the United States.”
Trump’s announcement comes amid Iran’s push for control of the corridor. Tehran has sought strong authority in the region, despite historically being considered an international waterway that is free to use.
During Tuesday’s meeting with Iraqi Prime Minister Ali al-Zaidi, Trump said he spoke with the leaders of the Gulf states, all of whom said they would like to invest in the US in “record amounts.”
OIL PRICES CONTINUED TO LOWEST LEVELS SINCE BEGINNING OF MARCH AFTER TRUMP SAID IRAN COSTS.
Ships and tankers in the Strait of Hormuz off the coast of Musandam, Oman, on April 18, 2026. (Reuters / Reuters)
“And this way there is no money,” he told reporters in the Oval Office. “I don’t like the idea of money, but at the same time, it’s not right for us to protect this virus from the whole world, China and everyone.”
“I have no problem defending it from anyone. But it is not fair that we are not compensated in some way. And we have been doing this for many years,” he added. “They’re investing and they’re getting a return on their money, and that’s great, but they’re going to be making a big investment in the United States and I like that better.”
Over the weekend, US and Iranian forces exchanged missile and drone attacks as Tehran again claimed control of the ship.
On Monday, the US launched strikes against Iranian military facilities. On Tuesday, Trump said that Iran had “deteriorated significantly.”
FOX Business Correspondent Edward Lawrence reports on rising US-Iran tensions as anchor Liz Claman highlights rising oil prices linked to Iran’s claims over the Strait of Hormuz and President Trump’s renewed embargo on ‘Claman Countdown.’
GET FOX BUSINESS ON THE GO BY CLICKING HERE
“I think what we’ve done in Iran is we’ve taken almost all of their military power.”
“I gave them a chance. I wanted to give them a chance to make a deal. You know, we had a deal two days ago. It was done. And suddenly, they couldn’t do it,” he said. “They didn’t like anything about the deal. They couldn’t do it. And they shot first. And it was a big mistake for them to shoot first because we’ve been beating the hell out of them.”
