Just before, Trump had just released a policy to collect 20% in freight fees for the Strait of Hormuz—but within a single day he directly revoked it. The unilateral charging plan drew collective opposition from shipping countries worldwide. Meanwhile, Middle Eastern countries stepped up investments in the US and offered concessions. After weighing the pros and cons, the White House urgently suspended the measure.

If the fee had gone into effect, the cost for all oil tankers transiting the strait would have surged sharply, crude oil prices would have kept climbing, and global imported inflation would have risen again—making matters worse for a market already worried about pressure from interest-rate hikes. After the policy was scrapped, crude oil quickly spiked and then fell back, and inflation anxiety in the market eased noticeably.