- US President Donald Trump replaced a planned 20 per cent toll on Strait of Hormuz cargo with investment deals
- Gulf States will invest 'massively' in the US under new trade and investment agreements
- Trump highlighted job creation from new factories and equipment entering the US
US President Donald Trump on Tuesday said that he would "replace" his earlier plan to charge a 20 per cent toll on cargo going through the Strait of Hormuz with investment and trade deals that Middle Eastern countries will make 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 wrote on Truth Social.
He said that the investments will be "massive" and that the deals will be "extraordinarily good" for the Middle Eastern countries and their future.
The US president spoke about how factories, plants and equipment will "pour" into the United States at "historic" levels, which will in turn create high-paying jobs.
20% Fee On All Cargo
On Monday, Trump had announced that the United States will charge "20 per cent on all cargo shipped" through the Strait of Hormuz.
"The USA will be, from this point forward, known as "THE GUARDIAN OF THE HORMUZ STRAIT," but as such, and as a matter of FAIRNESS, will be reimbursed, at the rate of 20% on all cargo shipped, for any and all costs necessary to do the job of providing safety and security to this very volatile section of the World. The process and formation will begin immediately," Trump posted on his social media platform, Truth Social.
Read | 20% Fee On All Cargo, Iran Blockade: Trump's New Hormuz Plan
He asserted that the strait is open and added that the US is reinstating the blockade to stop Iranian ships from entering or leaving the country.
Iran Hits Back
Iran has hit back at Trump's plan to charge 20 per cent on all cargo passing through the Strait of Hormuz, with its foreign minister arguing that Iran, not the US, has always been the true guardian of the waterway.
Writing on X, Iranian Foreign Minister Seyed Abbas Araghchi said, "POTUS is absolutely right. Whoever provides secure and safe passage of commercial vessels through the Strait of Hormuz should be compensated for this service. Iran has always been the GUARDIAN of the Strait and will remain so FOREVER."
He then took aim at the size of Trump's proposed fee, adding, "20 per cent is of course too much. We will be fair."
Read | "20% Too Much, We Will Be Fair": Iran On Trump's Hormuz Fee Demand
The Strait of Hormuz is one of the world's most important maritime chokepoints, typically carrying around one fifth of global oil and liquefied natural gas supply. Iran first imposed a blockade in the strait following US and Israeli strikes on Tehran on 28 February, which killed the then Supreme Leader Ali Khamenei and set off the wider conflict in the Middle East.
Since Trump announced that the ceasefire was over, regional mediators are trying to get the United States and Iran back to the negotiating table, according to the news agency Associated Press.
Officials told the news agency that the Pakistan-led mediation was working around the clock to reactivate the ceasefire.
