US President Donald Trump has reversed his decision to impose a 20% toll on ships passing through the Strait of Hormuz, citing pressure from Middle Eastern leaders.

Initially, Trump announced the toll as part of a strategy to compensate the US for protecting the critical waterway, which is vital for global oil and gas trade.However, after consultations with Gulf allies like Saudi Arabia, the UAE, Qatar, Bahrain, and Kuwait, he opted to replace the toll with trade deals.Trump emphasized that charging fees for the strait is unfair, especially since the US has previously criticized Iran for similar plans.The decision comes amid ongoing tensions with Iran, which has closed the strait following attacks by the US and Israel.The blockade on Iranian ships remains in place, but Trump's shift in policy has eased concerns about oil prices spiking.Allies were initially alarmed by the toll plan, but the revised approach focuses on economic cooperation rather than financial penalties.This move highlights Trump's tendency to backtrack on controversial decisions, a pattern dubbed 'TACO' by traders.The situation underscores the delicate balance of power in the region and the strategic importance of the Hormuz Strait.