2 hours ago
19
Donald Trump has signaled that Gulf allies will funnel investments into the United States rather than pay direct fees for American military protection, a pivot that effectively repackages security costs as economic partnerships.
The statement comes after weeks of escalating rhetoric about Gulf nations reimbursing Washington for decades of security guarantees, particularly as tensions with Iran continue to simmer.
From fees to investments: the numbers
The groundwork for this approach was laid during Trump’s May 2025 Gulf tour, which produced over $2 trillion in investment commitments from Gulf states. Saudi Arabia alone accounted for $600 billion of that total, while the UAE made a staggering 10-year investment pledge of $1.4 trillion.
The commitments span American technology, energy, and defense sectors. A notable $142 billion arms package from Saudi Arabia anchors the defense component, and former Trump adviser Gary Cohn indicated in March 2026 that Gulf states are likely to increase their US investments further, especially in the defense space.
Trump had also floated a 20% fee on cargo value for ships transiting the Strait of Hormuz, a critical chokepoint through which roughly a fifth of global oil supply passes daily.
On July 13, Trump stated the US “wants to be reimbursed” for protecting Gulf allies, but framed investment as the preferred vehicle. The administration has drawn parallels to the 1990-1991 Gulf War, when Gulf partners covered most of the operational costs for US military involvement.
What this means for markets and crypto
Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala have both shown increasing appetite for technology investments, and the crypto industry sits squarely at that intersection.
The more immediate concern for crypto traders is the Strait of Hormuz dynamic. A 20% fee on cargo transiting that waterway would spike energy prices globally, feeding inflation and potentially forcing the Federal Reserve into a more hawkish posture. The investment-over-fees approach effectively takes that tail risk off the table, or at least reduces it significantly.
The bigger strategic picture
The risk, as analysts have noted, is execution. Investment commitments are not the same as deployed capital. Geopolitical instability in the region, particularly any escalation with Iran, could delay or derail the fulfillment of these pledges. A $600 billion commitment from Saudi Arabia sounds impressive on paper, but the timeline and conditions for deployment remain subjects of negotiation.
Several Gulf states have already established crypto-friendly regulatory frameworks, and aligning investment mandates with US deployment creates natural opportunities for cross-border digital finance projects.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
English (US) ·