- US President Donald Trump announced a 20 per cent toll on cargo through the Strait of Hormuz on Monday
- The announcement surprised Gulf allies and senior US officials who warned against the move
- Trump reversed the toll plan by Tuesday after Gulf nations promised increased US investments
US President Donald Trump's sudden announcement of the 20 per cent toll on cargo passing through the Strait of Hormuz on Monday stunned allies in the Gulf and even senior members of his own administration.
The announcement came despite repeated warnings from his advisers that such a move could hurt US interests, strengthen Iran's position and push up global energy prices.
According to CNN, it prompted a frantic behind-the-scenes push by allies in the Gulf and senior officials to convince the US president to rethink the decision.
Making the announcement, Trump said on Truth Social, "The U.S.A. will be, from this point forward, known as 'THE GUARDIAN OF THE HORMUZ STRAIT."
He also vowed to impose a 20 per cent toll on all cargo moving through the crucial shipping route.
Chaos Inside White House, Gulf Nations Rush to Respond
Inside the White House, officials scrambled to figure out how such a toll would even work, who would pay it, how the money would be collected and whether shipping companies or America's Gulf allies would bear the cost.
At the same time, leaders from Saudi Arabia, the UAE, Bahrain and Qatar urgently tried to reach Trump, hoping to convince him to abandon the idea before it took effect.
A U-Turn Within A Day
Their efforts paid off, and by Tuesday, Trump had dropped the toll plan. Instead, he said Gulf countries had agreed to increase investments in the United States rather than pay fees for ships using the strait.
Explaining the reversal, Trump said, "I put it out yesterday, I thought it was good."
He added, "I was called by different people, different countries, kings and emirs, and all of the people that we all know and we all love. And they've been, frankly, they've been very strong partners. And they said we'd love to do it a different way."
A White House official later said Trump had considered charging the toll because the US had spent years protecting shipping in the region. However, Gulf nations instead offered new investments in the US, which the president accepted.
Why Advisers Opposed The Plan
According to the report, Trump's team had repeatedly warned against the proposal for months.
Officials feared the toll would increase oil and gas prices, create fresh political problems ahead of the midterm elections and directly contradict America's own stand that no country should charge fees for using an international waterway.
Just weeks earlier, Secretary of State Marco Rubio had said, "No country is allowed to charge tolls or fees on an international waterway. That's existing international law."
He added, "That's the way it is in international waterways all over the world, and that's the way we expect it'll be here."
Iran Seizes The Opportunity
Iran quickly used Trump's comments to back its own long-standing argument that countries providing security in the Strait of Hormuz deserve compensation.
Iranian Foreign Minister Abbas Araghchi wrote, "POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service."
He then added with a swipe at Trump's proposal, "20% is of course too much. We will be fair."
