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Trump Drops 20% Hormuz Fee, Brent Tops $86

7/16/2026

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Summary

Story summary

U.S. President Donald Trump scrapped the 20% fee on cargo through the Strait of Hormuz after Gulf monarchs urged him to replace it with trade and investment deals.
Analysts said the fee would likely violate international law and double shipping costs, pushing energy prices higher.
Brent crude rose above $86 a barrel as ship transits fell to ten, the lowest in over a month.

History

Historical Context

In October 1973 OAPEC, led by Saudi King Faisal, cut production and imposed an embargo on nations supporting Israel, reducing Middle-East exports by up to 70% and driving Brent from about $3 to $12 per barrel—a near-300% jump. The shock proved that limiting flow through the Strait of Hormuz can spike prices, a lesson reflected in today’s removal of Trump’s proposed 20% Hormuz fee.

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Story summary

U.S. President Donald Trump scrapped the 20% fee on cargo through the Strait of Hormuz after Gulf monarchs urged him to replace it with trade and investment deals.
Analysts said the fee would likely violate international law and double shipping costs, pushing energy prices higher.
Brent crude rose above $86 a barrel as ship transits fell to ten, the lowest in over a month.

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