Donald Trump announced a comprehensive blockade on Iranian maritime traffic through the Strait of Hormuz while replacing proposed tariffs with trade and investment agreements from Gulf states, signaling a shift in U.S. Middle East policy that could reshape regional oil flows and dollar inflows.
In a statement posted to Truth Social, Trump credited U.S. military leadership—including Defense Secretary Pete Hegseth, Joint Chiefs Chairman Dan Kane, and Admiral Brad Cooper of U.S. Central Command—for keeping the strategic waterway open to all vessels except those serving Iranian ports. The administration plans to enforce what Trump described as a "complete blockade" targeting ships bound for Iran or carrying Iran-related cargo, framing the measure as a response to what he characterized as Iranian leadership's destabilizing regional conduct.
Rather than implementing the previously threatened 20 percent tariff as compensation to the United States, Trump stated he negotiated alternative arrangements with Gulf leaders involving major trade and investment pacts. The president emphasized these investments would be "enormous" while benefiting recipient nations, and predicted the deals would drive manufacturing relocations to American soil and create millions of high-wage domestic jobs. Trump also reiterated that Iran will "never" acquire nuclear weapons under his administration.
The announcement carries significant implications for global oil markets and petrodollar dynamics, as any sustained disruption to Iranian shipping could tighten crude supplies while reinforcing U.S. dollar usage in Gulf trade settlements. The shift from tariffs to investment agreements suggests Trump prioritizes capital inflows and manufacturing revival alongside geopolitical containment of Iran.