Morning Business Report: Trump drops Strait of Hormuz cargo fee as stocks climb

President Donald Trump has abandoned plans to impose a 20% charge on cargo shipped through the Strait of Hormuz after Gulf allies urged him to reconsider.

(LILAMAX)- President Donald Trump has abandoned plans to impose a 20% charge on cargo shipped through the Strait of Hormuz after Gulf allies urged him to reconsider. Trump said on social media the proposed reimbursement fee would instead be replaced by trade and investment agreements with Gulf nations. At the same time, the United States announced it has resumed its blockade of Iranian shipping to and from the country’s ports and coastal waters.

Federal Reserve Chair Kevin Warsh told lawmakers the central bank has “no tolerance” for inflation, suggesting interest rates remain one of the tools available to keep prices under control. His comments came after inflation cooled in June, helped by lower energy prices.

On Wall Street, stocks finished higher as a favorable inflation report outweighed disappointing earnings news from IBM. The company’s shares posted their worst day on record after it warned about profits.

United Airlines also unveiled a new Economy Plus seating option that replaces the traditional middle seat with a shared table. The airline said the new design will debut on Airbus aircraft entering service later this year and could eventually expand to more of its fleet.

Meanwhile, Sotheby’s sold a Tyrannosaurus rex fossil nicknamed “Gus” for $50.1 million, including fees, after a bidding war that lasted nearly 10 minutes. The auction house did not identify the buyer, and the sale marks another record-setting price for dinosaur fossils on the private market.