President Donald Trump proposed a 20% tax on goods transiting the Strait of Hormuz, which was quickly reversed following pressure from Gulf allies. The initial announcement on Monday stated that the U.S. would be known as 'THE GUARDIAN OF THE HORMUZ STRAIT' and would implement the tax immediately. However, after receiving feedback from Middle Eastern leaders, Trump rescinded the proposal within 25 hours, opting instead for trade and investment deals with Gulf states.
Iran's Foreign Minister Seyed Abbas Araghchi commented that while the concept of reimbursement for guarding the Strait was valid, the tax rate was excessive. Trump indicated that Gulf leaders preferred to invest billions in the U.S. rather than pay the tax, which he later deemed unnecessary. The silence from Gulf nations regarding the tax was noted, as they rely heavily on U.S. security.
Criticism of the tax emerged from various sources, including the UAE-based publication The National, which highlighted the logistical challenges the tax would pose. Experts suggested that the tax could add significant costs to shipping, with estimates indicating an additional $32 million per voyage for large crude carriers. Other outlets, such as Al Jazeera, labeled the proposal as illegal and unlikely to be enforced, while some Gulf public figures expressed their discontent with the plan, emphasizing their desire to bypass the Strait altogether.