Trump abandons the strait toll plan; the U.S. restores the blockade of Iranian ports and expands military operations

BlockBeats message: On July 15, U.S. President Donald Trump announced that he would abandon the previously proposed plan to impose a 20% toll on shipping through the Strait of Hormuz, just about 24 hours after the proposal was made public. Trump said he has decided to replace the toll scheme with trade and investment agreements between Gulf countries and the U.S., adding that he has communicated with countries including Saudi Arabia, the UAE, Qatar, Kuwait, and Bahrain, which he said prefer to increase investment in the U.S. rather than accept the Strait tolls.

U.S. Energy Secretary Wright later confirmed that the 20% toll is “no longer within the scope of discussion,” and that the Strait of Hormuz will not impose tolls.

Meanwhile, the U.S. announced the restoration of the maritime blockade on Iranian ports and coastal areas, which took effect officially on Tuesday afternoon local time. The U.S. Central Command said U.S. forces launched a new round of strikes against Iran to weaken its ability to attack commercial ships in the Strait of Hormuz. Trump said military action against Iran will continue, and threatened that if Iran refuses to return to the negotiating table, the U.S. next week will strike infrastructure such as Iran’s power plants and bridges, though energy facilities will be the “last target.”