US President Donald Trump has reversed his plan to impose a a 20 percent “safe passage” fee on ships passing through the Strait of Hormuz after intervention from some Gulf countries.
Trump had announced the levy on Monday while declaring the US ‘the guardians of the Hormuz strait’.
He said the payment would help cover the cost of maintaining security in the strategic waterway.
The announcement sent oil prices surging through the roof, with Gulf allies’ leaders working frantically to get Trump on the phone in time to talk him out of the idea altogether.
The flurry of appeals came from Saudi Arabia, the United Arab Emirates, Bahrain and Qatar.
Those petitions succeeded as Trump announced a reversal of his plan on Tuesday.
“Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee
