Trump drops Strait of Hormuz fee, seeks Gulf investment deals

Donald Trump dropped a proposed 20% fee on cargo moving through the Strait of Hormuz and shifted to trade and investment deals with Gulf states. He said Gulf leaders wanted to invest in the United States at “record amounts,” while shipping executives warned that monetizing safe passage could invite copycat demands from other countries and further unsettle traffic already under pressure.

About 20 million barrels of oil a day, or roughly 25% of world seaborne oil trade, move through the Strait of Hormuz, and about 80% of that oil goes to Asia. About 93% of Qatar’s LNG exports and 96% of the United Arab Emirates’ LNG exports also pass through the corridor, according to the International Energy Agency, and the waterway carries significant volumes of fertilizers, linking it directly to food security as well as energy markets.

The IEA called the 2026 Middle East disruption the largest supply shock in the history of the global oil market. Flows through Hormuz fell from around 20 million barrels a day before the war to an average of 2.7 million barrels a day in March, April and May 2026, and UNCTAD said ship transits dropped by about 95%. Brent crude rose above $90 a barrel, and higher tanker freight rates, marine fuel costs and war-risk insurance premiums spread the shock through transport and supply chains.

Gas markets took a hit as well. The loss of almost 20% of global LNG supply pushed natural gas prices in Asia and Europe to their highest levels since the 2022/23 energy crisis, according to the IEA. A fee on Hormuz traffic would open a “dangerous Pandora’s Box,” shipping and logistics executives warned.