EL7.AI
GeopoliticsMedium•14 July 2026•
2 min read

Trump Reverses Hormuz Transit Fee as DeepSeek Prepares for IPO

Key Facts

1President Trump withdrew his proposed 20% fee on cargo through the Strait of Hormuz in exchange for investment commitments from Gulf states.
2Chinese AI startup DeepSeek has begun preparing for an initial public offering while pursuing fresh private funding.
3Oil prices settled at a one-month high as renewed US-Iran tensions maintained supply concerns.

In a move reflecting a swift pivot in global energy corridor strategy, President Trump has withdrawn his proposal to impose a 20% fee on cargo passing through the Strait of Hormuz. According to reports, this reversal followed negotiations that replaced the transit fees with investment commitments from Gulf nations. Alongside these geopolitical shifts, Chinese AI startup DeepSeek has begun preparations for an initial public offering while seeking fresh private funding, as oil prices settled at a one-month high amid persistent US-Iran tensions.

This withdrawal eases immediate concerns regarding global supply chains, as the Strait of Hormuz remains a critical artery for approximately one-fifth of global oil consumption daily, per US Energy Information Administration data. In the technology sector, DeepSeek’s move toward an IPO marks a strategic step to compete with AI giants; previous reports from Bloomberg suggest the company is targeting high valuations to match its international ambitions. These developments have collectively calmed markets that were bracing for a spike in trade costs linked to energy transit.

Traders are awaiting the EIA Weekly Petroleum Report on July 8, 2026, which will provide clarity on US crude inventories and the impact of geopolitical friction on supply. Investors will also monitor the FOMC Minutes on the same day to gauge how these developments influence inflation expectations and monetary policy.