Trump Reverses Strait of Hormuz Transit Fee Decision Within 24 Hours, Pushes Gulf Investment Deals with U.S.
On July 14, 2026, Trump announced on social media he would replace a planned Hormuz transit fee with trade and investment deals between the US and Gulf states.
MIDDLE EAST,ECONOMY
Global N Press
7/14/20262 min read
On July 14, 2026, U.S. President Donald Trump announced on social media that he had decided to replace the previous day's plan to impose a transit fee on the Strait of Hormuz with trade and investment agreements between Gulf states and the United States. On July 13, Trump had declared that he would impose a 20 percent fee on all goods transported through the Strait, styling himself as the strait's “guardian” and calling out allies including Saudi Arabia and the United Arab Emirates for failing to pay their share. According to U.S. media reports, a “24-hour sprint” involving numerous aides and Middle Eastern allies successfully persuaded Trump to abandon the fee plan.
Trump said at the White House that after he proposed the fee, multiple Middle Eastern countries called to express willingness to make large-scale investments in the United States, and that he was “very satisfied” with the response, adding that he therefore “no longer needs to collect transit fees.” International observers noted that the dramatic reversal exposed Washington's strategic predicament in the Middle East. Meanwhile, repeated disruptions to the Strait of Hormuz due to ongoing conflict are accelerating Gulf states' efforts to find alternative shipping routes.
According to the Financial Times and Reuters on July 14, Dubai is planning to build a new port and container terminal on the UAE's eastern coast to reduce dependence on its flagship Jebel Ali Port and bypass the Strait of Hormuz. Industry analysts believe this marks the beginning of a shift in the traditional port infrastructure built on the assumption of unimpeded access through the Strait.
In the energy sector, Saudi Arabia is utilizing its east-west pipeline to transport crude from its eastern oil-producing regions to the Red Sea port of Yanbu, bypassing the disrupted Strait. Data from SIGMAR Ocean, cited by Reuters on July 14, showed that crude loading at Yanbu reached approximately 4.7 million barrels per day around July 13, up nearly 40 percent from 3.36 million barrels per day around July 3. However, analysts warned that further deterioration in the Red Sea situation could lead to the closure of the Bab el-Mandeb strait, dealing another blow to global energy supplies.
