US President Donald Trump has abandoned the idea of charging 20% for all cargo passing through the Strait of Hormuz and said that instead he will conclude trade and investment deals with the Gulf states, Reuters reported, BTA reported.
The change in plan came a day after Trump proposed a 20% fee for the protection of the waterway.
"After very productive talks with leaders in the Middle East, I have decided to replace the 20% compensation with trade and investment deals that the various Gulf countries will conclude with the United States," he wrote on his social network Truth Social.
Trump did not mention any specific commitments by the Gulf countries. He said only that "the investments will be massive, but at the same time extremely good for them and their future."
Shortly after Trump made the proposal to impose a 20% fee yesterday, the UN International Maritime Organization said it opposed the introduction of such a levy on ships passing through the waterways, adding that it expected more details from the US president.
In his post today, the US president announced that the Strait of Hormuz is open to shipping for all countries except Iran.
"That's why we have a complete blockade, but only for ships sailing to and from Iranian ports or transporting Iranian cargo," he said.