US President Donald Trump said he has decided to replace a proposed 20% reimbursement fee on cargo transiting the Strait of Hormuz with what he described as major trade and investment agreements from Gulf states.
“Based on highly productive conversations with Middle East leadership, 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,” Mr Trump said in a post on Truth Social.
He added that the investments would be “massive” and beneficial for both the US and Gulf economies.
Mr Trump said the United States would continue to keep the Strait of Hormuz open to international shipping while maintaining a blockade on vessels travelling to and from Iranian ports or carrying Iranian cargo.
Mr Trump also reiterated that Iran would not be allowed to obtain a nuclear weapon and accused Tehran’s leadership of pursuing policies that threatened regional stability.
