US president Donald Trump on Tuesday said the United States would not proceed with its proposed 20 per cent toll on cargo transiting the Strait of Hormuz. He announced that instead that Middle Eastern countries would enter into trade and investment agreements with the United 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,” Trump said in a post through Truth Social. Trump said the investments “will be MASSIVE”, though it was not immediately clear whether they would be new commitments beyond those announced following his visit to the Middle East last year.Trump also said the United States would impose a full blockade on ships travelling to and from Iranian ports or carrying Iranian cargo, while stating that Hormuz would remain open to all other maritime traffic.“The Strait of Hormuz is open to ALL Ship traffic except for Iran — and that is because of their lying, violent, malicious leadership, which is taking them down the path of TOTAL DESTRUCTION. We will therefore have a FULL Blockade, but only on Ships coming to and from Iranian ports, or carrying anything have to do with Iranian cargo,” Trump said. “The days of Iran killing hundreds of thousands of people, including 52,000 protestors, are OVER” and reiterated that “IRAN WILL NEVER HAVE A NUCLEAR WEAPON!” he added. Trump had earlier announced a proposed 20 per cent toll on ships transiting the waterway.The latest exchange of fire has cast doubt on an interim agreement that was intended to pause the fighting, reopen the Strait of Hormuz and provide negotiators time to work towards a permanent settlement. Instead, hostilities have resumed, raising concerns over global trade and prompting warnings for commercial airlines.Hormuz remains at the centre of the conflict. In peacetime, about one-fifth of the world’s traded crude oil and natural gas passes through the waterway. During the conflict, Iran disrupted shipping by attacking and threatening vessels, driving up the prices of oil, fertiliser and other goods.Although the interim agreement was expected to restore shipping through the strait, Iran has continued to target vessels using a route overseen by the US military that lies outside Tehran’s control.
