BBC:
President Donald Trump has reversed his threat of a 20% fee on all Strait of Hormuz cargo shipping, as the US battles to break Iran’s hold on the waterway.
Trump said the toll would be replaced by “massive” trade and investment deals with Gulf states, just hours before the US resumed its blockade of Iranian ports.
It follows renewed strikes between the US and Iran, which triggered a sharp rise in oil prices as tanker traffic through the Strait has virtually stalled.
US Central Command (Centcom) said late on Tuesday its “forces began launching an additional round of strikes against Iran to continue degrading Iranian capabilities used to attack commercial shipping” in the key waterway.
Centcom earlier said it had carried out a third night of attacks with the same aim, and on Tuesday Iran’s state media reported blasts in multiple cities, including Bushehr – home to a nuclear power plant.
Tehran said it had targeted US military facilities in Bahrain and Jordan after earlier hitting two United Arab Emirates tankers.
The ongoing strikes have underscored the strategic importance of the strait. Iran accuses the US of interfering in its management of Hormuz – but controlling it means Tehran can also threaten the global economy.
Trump on Monday declared that the US was now the “guardian” of the Strait of Hormuz, and vowed to impose a 20% charge on all cargo shipped through the waterway to pay for protecting it.
Raising the stakes further, Trump said the US would also reimpose its naval blockade on Iran in a bid to further squeeze the country’s struggling economy.
In his latest post on Truth Social, Trump wrote: “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.” The US president provided no further details.
He also said that the strait “is open to ALL Ship traffic except for Iran” and that “oil is flowing like never before, thanks to the awesome Power of the United States Military”.
Speaking later after talks in Washington with the new Iraqi Prime Minister Ali al-Zaidi, Trump said: “I don’t like the concept of a fee, but at the same time, it’s not fair that we’re protecting this Strait for the entire world.”
He said he had changed his initial fee plan after receiving numerous calls from Gulf leaders.
In response to Trump’s announcement, Iran said it would remain in control of the Strait of Hormuz.
