Trump replaces 20% Hormuz fee with Gulf investment deals
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- Trump announced a comprehensive U.S. naval blockade targeting Iranian maritime trade.
- The Strait of Hormuz will remain open to non-Iranian commercial shipping.
- The administration replaced a proposed transit fee with Gulf investment agreements.
- Trump warned Iran of severe consequences and reiterated it will never be allowed to obtain a nuclear weapon.
US President Donald Trump announced Tuesday that the United States is implementing a comprehensive naval blockade strictly targeting all maritime traffic bound to or from Iranian ports, as well as any vessels carrying Iranian cargo.
In a sweeping statement published on Truth Social, Trump declared that the Strait of Hormuz will remain fully open to all international commercial shipping except for Iran, warning the Islamic Republic's leadership that their current trajectory is leading the nation down a path of "total destruction."
Enforcing blockade, securing oil flow
Trump credited the aggressive deployment of American military might for maintaining global energy corridors, issuing a specific salute to his top defense officials: Secretary of Defense Pete Hegseth, Chairman of the Joint Chiefs of Staff Dan Caine, and Commander of United States Central Command Admiral Brad Cooper.
"Oil is flowing like never before, thanks to the awesome Power of the United States Military," Trump wrote, praising American forces as the most powerful military anywhere in the world. He asserted that the strict blockade is a direct response to the "lying, violent, malicious leadership" of Iran.
The US President added that the clampdown signals an end to regional aggression and domestic crackdowns by Tehran, writing, "The days of Iran killing hundreds of thousands of people, including 52,000 protestors, are OVER and, most importantly, IRAN WILL NEVER HAVE A NUCLEAR WEAPON!"
Scrapping 20% fee for Gulf investment
The announcement marks a dramatic structural pivot in how the Trump administration intends to finance its high-stakes naval operations in the Persian Gulf.
Following what he characterized as "highly productive conversations with Middle East leadership," Trump revealed he has decided to completely drop his contentious plan to levy a 20% maritime reimbursement fee on regional cargo.
In its place, the White House has negotiated an alternate framework: massive, direct trade and capital investment deals flowing from various Gulf States straight into the United States domestic economy.
According to Trump, these agreements will expand upon what is already the largest influx of foreign dollar investment into American history.
The administration expects the incoming capital to fund domestic infrastructure at historic levels, fueling the construction of factories, processing plants, and heavy industrial equipment.
Trump concluded that the economic pivot would ultimately "create additional millions of High Paying AMERICAN Jobs," framing the military and economic maneuvers as a sweeping double-victory for his domestic and foreign policy agendas.
