Trump Reverses Strait of Hormuz Fee Plan, Promises Safe Passage for Investing Gulf Vessels

One day after announcing a fee for ships transiting the Strait of Hormuz, President Donald Trump said on Tuesday that the United States would instead guarantee safe passage to vessels from Persian Gulf states that agree to invest in the United States. The rapid reversal leaves businesses operating in the region uncertain about how the policy will be implemented and underscores the volatility of the U.S.–Iran conflict as it edges toward renewed hostilities.

New York Times

Shipping executives warn that the mixed signals could raise transportation costs worldwide. Lasse Kristoffersen, chief executive of Wallenius Wilhelmsen, a Norway-based car-shipping and logistics firm, noted that “the fact that things are changing all the time, itself, means that it’s hard to make a decision to normalize trade.” Jakob Larsen, chief safety and security officer at BIMCO, the world’s largest shipping association, described the proposal as “really, really problematic from a shipowner’s perspective and for shipping in general,” adding that it “will only drive up the cost of transportation across the globe, and that will eventually hit the end customer and create inflationary pressure.”

New York Times

President Trump’s announcement framed the guarantee as a reward for Gulf states that commit capital to the United States, positioning the move as a strategic alternative to a direct fee. No other U.S. agency comment was provided in the source material.

New York Times

Industry leaders argue that allowing nations to monetize the Strait of Hormuz threatens long-standing international shipping conventions. Larsen warned that such a precedent could encourage other bordering countries to seek similar fees, weakening the legal framework that underpins safe, cost-effective global trade.

New York Times

• “One day after proposing a fee for ships transiting the Strait of Hormuz, President Trump on Tuesday said the United States would instead guarantee safe passage to vessels from Persian Gulf states that agree to invest in the United States.” — President Donald Trump

New York Times

• “The fact that things are changing all the time, itself, means that it’s hard to make a decision to normalize trade,” — Lasse Kristoffersen, CEO, Wallenius Wilhelmsen

New York Times

• “That is, of course, really, really problematic from a shipowner’s perspective and for shipping in general,” — Jakob Larsen, Chief Safety and Security Officer, BIMCO

New York Times

• “It will only drive up the cost of transportation across the globe, and that will eventually hit the end customer and create inflationary pressure.” — Jakob Larsen, BIMCO

New York Times