The reversal came a day after Trump said Washington would collect a “reimbursement fee” from vessels using the strategic waterway, a move that triggered objections over its legality, feasibility and inflationary impact. He said talks with Gulf leaders had produced a better arrangement, though no detailed commitments or investment values were disclosed.
Trump said the strait would remain open to all shipping except vessels connected to Iran. The distinction shifts the policy from a broad charge on international commerce to targeted pressure on Tehran, even as U. S. forces continue operations intended to restrict Iranian exports and military movements.
The change eased some market anxiety but did not remove the larger risk to energy supplies. Brent crude settled at $84.73 a barrel, up 1.7 per cent, while West Texas Intermediate rose 1.5 per cent to $79.34. Both benchmarks had climbed further during the session as traders assessed attacks on tankers, reduced traffic and the possibility of a longer confrontation.
The Strait of Hormuz carries roughly one-fifth of globally traded oil and gas, making even a partial disruption a major threat to fuel prices, shipping insurance and inflation. Around 20 million barrels of oil passed through the route each day in 2024. Asian economies receive most of the crude and condensate moving through the channel, while Qatar’s liquefied natural gas exports also depend heavily on it.
Tanker movements fell to their lowest level in two months after renewed U. S.-Iran strikes and attacks on commercial vessels raised safety concerns. Shipowners have faced higher war-risk premiums, crew reluctance and uncertainty over whether naval escorts can guarantee safe passage through the narrow channel between Iran and Oman.
The International Maritime Organization had opposed measures that could interfere with freedom of navigation and was seeking clarity on how the levy would work. A 20 per cent charge calculated against cargo value would have imposed enormous costs. A supertanker carrying two million barrels of crude worth more than $160 million could have faced a fee exceeding $30 million.
Trump’s retreat avoids that immediate shock but leaves unresolved questions about the legal basis and operational scope of the U. S. blockade. Iran has rejected Washington’s claim to control the strait and insists it retains authority over its territorial waters. Tehran has also warned that continued attacks could lead to wider restrictions on regional energy exports.
Military exchanges have intensified since the breakdown of the June understanding that created a 60-day window for negotiations over Iran’s nuclear programme and regional security. U. S. aircraft have struck missile, drone and coastal military sites, including targets around Bushehr and Bandar Abbas. Iran has responded with attacks on U. S. facilities and allied positions across the Gulf.
Commercial shipping has also been drawn into the confrontation. Tankers linked to Gulf states have been struck, killing and injuring crew members and deepening concern that civilian vessels may become instruments of retaliation. Maritime authorities have recorded dozens of security incidents in Gulf waters during the conflict, with seafarer deaths adding pressure for protected transit corridors.
Gulf governments have strong incentives to support an arrangement that keeps the strait open without formalising a toll system. Saudi Arabia and the United Arab Emirates have expanded pipeline capacity to bypass Hormuz, but alternative routes cannot absorb all exports. Iraq, Kuwait and Qatar remain especially exposed to any prolonged interruption.
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