Trump abruptly changes course: cancels the 20% Hormuz Strait protection fee, to be replaced by the Gulf states’ “massive investment in the United States”

After previously announcing that it would impose a mandatory 20% safety fee on cargo transiting the Strait of Hormuz, US President Donald Trump posted an update to his strategy today. He announced that he has reached an agreement with Middle East leaders to cancel this 20% fee, replacing it with “massive investment” by Persian Gulf countries into the United States. In addition, the US military will continue to impose a comprehensive maritime blockade on Iran to ensure stable global crude oil supply chains.
(Background recap: Breaking: Trump announces the US military will restart the “Iran blockade”! A 20% cargo protection fee will be imposed on transit through the Strait of Hormuz)
(Background supplement: UAE plans to build a new east-coast port “avoiding the Strait of Hormuz”! Kobeissi: the US-Iran war is reshaping global trade)

Table of contents

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• Cancel the toll fee in exchange for hundred-billion-level manufacturing investment
• Maintain a “full blockade” against Iran to cut off its trade lifeline
• Is the oil price warning temporarily lifted? Observe the follow-on impact on the macroeconomy and markets

After previously, with no advance notice, announcing that the United States would take over the Strait of Hormuz and force the collection of a 20% safety protection fee, US President Donald Trump has made a major shift in policy direction following talks with Middle East leaders.

On July 14, 2026, Taipei time, Trump published a new long post on his personal social platform Truth Social. In it, he announced that he has formally replaced the earlier “cargo reimbursement fee” of 20%—which had thrown global supply chains and the overall economy into panic—with a “vast investment and trade agreement by Persian Gulf countries with the United States.” At the same time, he declared that the US military has fully secured control of that waterspace, and that crude oil is flowing smoothly at an unprecedented speed.

Cancel the toll fee in exchange for hundred-billion-level manufacturing investment

In his latest statement, Trump laid out the considerations behind this strategic shift in detail. He said that, based on highly effective dialogue with Middle East leaders, he decided to revoke the 20% compensation fees previously collected by the United States. As an alternative, the various Gulf countries will instead channel large-scale trade and investment agreements toward the United States.

Trump emphasized that the scale of these investments will be “MASSIVE,” and that it will drive a surge of historically large factories, plants, and equipment into the US mainland. He expects this to create millions of high-paying job opportunities for the United States. Confidently, he pointed out, “We already have the largest-ever scale of dollar foreign capital inflows, and these new investments will make that number even bigger. This is a win-win for both the United States and the Middle East countries’ future.”

Maintain a “full blockade” against Iran to cut off its trade lifeline

Despite showing goodwill to allies, Trump did not ease the pressure of sanctions on Iran. He singled out and praised Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, and the commander of US Central Command Brad Cooper, crediting the strength of the US military’s deterrent force. He said that, at present, the Strait of Hormuz is fully open to all vessels—“except Iran.”

Trump reiterated that the United States is implementing a “FULL Blockade,” strictly prohibiting any vessels from entering or leaving Iranian ports or transporting cargo related to Iran. He sharply criticized Iran’s leadership as being full of lies and violence, saying it is pushing the country down a path of “complete destruction.”

Is the oil price warning temporarily lifted? Observing the follow-on impact on macro and markets

For Wall Street and global financial markets, Trump’s decision to cancel the 20% cargo security fee is undoubtedly the removal of a nuclear device capable of igniting global inflation. If the 20% tariff is not imposed on the transportation costs of crude oil, the risk of a spike in global energy prices will be greatly reduced—helping the Federal Reserve (Fed) to coordinate its future rate cuts and inflation control.

“America wins again—winning in an unprecedented way.” Trump concluded forcefully at the end of the post, declaring that the era in which Iran has been harming hundreds of thousands of people is over, and vowing that “Iran will never have nuclear weapons.” As the situation in the Middle East shifts from a military blockade to an economic game of “investment for security,” the pricing of international oil, the US dollar’s trajectory, and the valuation of risk assets such as Bitcoin are expected to see a new round of sentiment repair and sector rotation in the short term.