Update(12:00ET): It's the return of another TACO Tuesday as President Trump in a lengthy Truth Social missive appears to have reversed his plan to collect a 20% of cargo fee for international vessels wishing to transit the Strait of Hormuz.
"Oil is flowing like never before," he began (except it's not...), before writing, "Based on highly productive conversations with Middle East leadership, I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States. Those Investments will be MASSIVE but, at the same time, extraordinarily good for them, and their future." He echoed the same in follow-up with reporters at the White House:
Trump on Strait of Hormuz fees:
— Clash Report (@clashreport) July 14, 2026
I was called by different people, different countries — kings, emirs, and all of the people that we all know.
They said we'd love to do it a different way. We'd love to invest in the United States — billions and billions of dollars. And continue… pic.twitter.com/MHFmQfhxVy
So Gulf allies, and likely officials within his own cabinet, have talked Trump out of the 20% collection scheme idea, which would have likely in the end just shifted leverage back over to Iran, given its own much cheaper passage protocol scheme.
US OIL PARES GAINS, WTI TRADES NEAR $78/BBL
