US President Donald Trump has abandoned a proposed 20% transit fee for ships passing through the Strait of Hormuz, opting instead for trade deals with Gulf states.

This decision comes after a series of military strikes between the US and Iran, which have disrupted global energy supplies and raised inflation fears.The fee plan, which could have generated $240 million daily, faced strong opposition from shipping companies and international bodies.Iran reported attacks on its islands and military bases, while the US imposed a naval blockade.Oil prices rose 2% amid heightened tensions.Analysts warn that while the conflict remains controlled, the risk of escalation persists.The war has caused significant economic strain in the US, with rising fuel prices and public dissatisfaction.Diplomatic efforts, including a recent memorandum of understanding, aim to de-escalate the situation, but doubts remain about its effectiveness.