Trump Drops Hormuz Fee as US Strikes on Iran Continue

Summary

Trump reversed his 20% fee on Hormuz cargo after GCC investment pledges, while maintaining a blockade on Iranian shipping. US strikes on Iran continue, with Trump threatening future attacks on energy infrastructure. Strait of Hormuz traffic is severely disrupted, and Brent crude held around $85 as markets absorbed the mixed signals ahead of an August 28 negotiation deadline.

• Trump reinstated the blockade on Iranian ports in the Strait of Hormuz but scrapped the proposed 20% fee on non-Iranian cargo.
• Gulf Arab states reportedly pledged further US investments in exchange for revoking the fee, though at least one regional government denied new commitments.
• US Central Command carried out a seven-hour wave of strikes against dozens of targets near the strait and along Iran’s coast.
• Trump warned of upcoming strikes on power plants and bridges, signaling prolonged military pressure.
• Strait of Hormuz maritime traffic has slowed to a trickle, with ships at a near standstill after prior attacks on UAE-flagged vessels.
• Brent crude traded around $85 a barrel, showing a muted reaction to the escalating news flow.
• Uncertainty remains over the continuation of technical negotiations and the August 28 deadline for the 60-day MOU period.