US President Donald Trump withdrew his plan to impose a 20 percent cargo toll on ships passing through the Strait of Hormuz, just 24 hours after announcing it. The reversal came following urgent diplomatic outreach from Gulf leaders, including those of Saudi Arabia, the UAE, Bahrain, and Qatar, who persuaded Trump to abandon the proposal. The initial announcement had caused confusion within the White House and alarm among America’s regional allies.

Trump had earlier declared on his social media platform that the United States would act as the “guardian” of the Hormuz Strait and would charge all cargo vessels using the route. White House officials reportedly lacked clarity on how the toll would be implemented or collected. Following discussions with Gulf rulers, Trump said the countries agreed instead to increase their investments in the United States.

According to CNN, Trump’s advisers had long opposed the toll idea, fearing it could raise oil and gas prices and contradict US maritime policy. Iran, meanwhile, used Trump’s remarks to justify its own claim for compensation for securing the strait’s safety.