US President Donald Trump said Tuesday he was scrapping a planned levy on ships transiting the Strait of Hormuz a day after he announced it, and replacing the fee with trade deals with Gulf allies.
Trump said his sudden decision to withdraw the toll -- which he imposed amid fresh clashes with Iran over the vital waterway -- was "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," Trump said on his Truth Social network.
The US leader said he would continue with a "FULL Blockade" on ships coming to and from Iranian ports but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo.
Trump had declared on Monday that Washington was now the "THE GUARDIAN OF THE HORMUZ STRAIT" and would impose hefty fees on shipping to reimburse the United States for protecting the key conduit for oil and gas.
Iran's military command had insisted it would not allow the United States to "interfere" in the strait, while also warning its Gulf neighbors -- who have borne the brunt of its retaliatory attacks -- against cooperating with Washington.