United States President Donald Trump has scrapped plans to impose a 20 per cent toll on cargo passing through the Strait of Hormuz, opting instead for trade and investment agreements with Gulf states.
According to him, the decision followed what he described as productive discussions with Middle East leaders.
Trump announced the decision on Tuesday in a post on Truth Social, saying the proposed fee would be replaced by investment commitments from countries in the region.
“I have decided to replace the 20% United States Reimbursement Fee with Trade and Investment Deals that the various Gulf States will be making into the United States. Those investments will be massive but, at the same time, extraordinarily good for them and their future,” Trump wrote.
Trump also announced a blockade on ships travelling to and from Iranian ports or carrying Iranian cargo, while insisting that the Strait of Hormuz would remain open to all other international shipping.
“The Strait of Hormuz is open to all ship traffic except for Iran… We will therefore have a full blockade, but only on ships coming to and from Iranian ports, or carrying anything to do with Iranian cargo,” he said.
The Strait of Hormuz is one of the world’s busiest oil shipping routes, making any policy affecting traffic through the waterway significant for global trade and energy markets.