U.S. Replaces Hormuz Transit Fee With Gulf Investment Deals, Enforces Iran Blockade

President Trump scrapped a planned 20 percent transit fee on cargo moving through the Strait of Hormuz and replaced it with proposed trade and investment agreements with Persian Gulf states. The shift came while U.S. forces continued strikes on targets inside Iran and enforced a renewed naval blockade of Iranian ports.

Explosions were reported on July 14 near the port city of Bandar Abbas, the nuclear plant at Bushehr, and several islands off Iran’s southern coast. Iranian state media said five explosions occurred around Bandar Abbas. Jordan and Bahrain reported intercepting Iranian ballistic missiles, and the United Arab Emirates said attacks on vessels in the strait killed one crew member and wounded at least eight others.

m. The command added that it would continue supporting traffic for vessels not violating the blockade.

The renewed strikes followed the collapse of an accord signed last month that had set conditions for peace talks. Over the weekend, President Trump notified Congress that the United States was once again at war with Iran, beginning a 60-day window during which he could order strikes without further congressional approval.

Speaking to reporters at the White House on July 13, President Trump said the attacks were intended to prevent Iran from disrupting maritime traffic in the strait.

“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States.”

He added that a deal to end the fighting remains possible despite the renewed attacks. Iran rejected navigation proposals during the weekend and both sides hardened their positions over control of the strait.