Post by : Bianca
Haleem
US President Donald Trump on Tuesday withdrew his proposal to impose a 20% reimbursement fee on cargo passing through the Strait of Hormuz. Instead, he announced that Gulf nations would make what he described as "massive" trade and investment commitments to the United States.
In a post on Truth Social, Trump said the strategic waterway would remain open to global shipping, except for vessels linked to Iran. He also credited the US military with maintaining security along one of the world's busiest maritime routes.
The decision came only one day after Trump proposed charging all cargo ships a 20% reimbursement fee for using the Strait of Hormuz.
Trump Explains Policy Change
Explaining the shift in policy, Trump said discussions with leaders from the Middle East convinced him to replace the proposed cargo fee with new economic agreements.
"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 wrote.
He said the planned investments would be substantial and would strengthen manufacturing across the United States.
According to Trump, the new agreements would lead to factories, industrial plants, and equipment being established in the country on a historic scale, creating millions of well-paying American jobs.
US Military Praised as Hormuz Shipping Continues
Trump also praised the US military for ensuring that oil shipments continue to move through the Strait of Hormuz despite ongoing tensions with Iran.
"Oil is flowing like never before, thanks to the awesome power of the United States Military," he wrote.
He also praised Secretary of War Pete Hegseth, Joint Chiefs Chairman Dan Caine, and CENTCOM Commander Admiral Brad Cooper for their roles.
Iran-Only Shipping Blockade Remains
Although Trump withdrew the proposed cargo fee, he confirmed that an Iran-focused shipping blockade would remain in place.
He announced what he called a "FULL Blockade," saying it would apply only to ships travelling to or from Iranian ports or carrying Iranian cargo.
Read More: Trump Confirms Iran Talks Persist Despite Ceasefire End
Trump again accused Iran's leadership of taking the country "down the path of total destruction" and repeated that Tehran would never be allowed to obtain a nuclear weapon.
Decision Follows Earlier 'Guardian of the Hormuz Strait' Plan
The latest announcement marks a major change from the policy Trump introduced on Monday, when he declared that the United States would become the "Guardian of the Hormuz Strait."
Under that proposal, all cargo moving through the waterway would have been charged a 20% reimbursement fee. Trump had argued that the United States should be compensated for providing security along one of the world's most important shipping routes.
At the same time, he had announced an Iranian blockade, stating that only Iranian ships and vessels carrying Iranian cargo would be denied access to the strait, while ships from all other countries would continue to pass without restrictions.
Iran Rejects US Proposal
Iran quickly rejected Trump's proposals and insisted it would not allow the United States to control or supervise the Strait of Hormuz.
Tehran's joint military command warned that any attempt by US forces to operate in the waterway without Iran's authorisation would be "strongly confronted."
Iran also warned regional governments against cooperating with Washington, saying that any support for the US initiative would be considered "war against Iran."
Regional Tensions Continue
The latest exchange highlights the continuing military tensions between the United States and Iran across the Gulf. Despite Trump's decision to withdraw the proposed 20% cargo fee, concerns over regional security and global energy supplies remain as both sides continue to exchange strong warnings.
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