Donald Trump has announced a U-turn on his decision to impose a 20 percent toll on cargo passing through the Strait of Hormuz.
The President cited on Tuesday that the US will instead agree to ‘massive’ investment deals with the Gulf states.
Trump wrote on Truth Social: ‘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.’
Following the reversal, Trump stated that the U.S. military will act as the ‘guardian’ of the strait, warning that he will bomb Iranian shorelines and disable Iranian boats targeting commercial vessels.
It is unclear whether these would be new commitments, or would relate to what the President announced after a visit to the Middle East last year.
The latest exchange of fire between the two countries has shattered an interim agreement designed to pause hostilities, reopen a vital global energy waterway and allow time for permanent peace talks.
Trump also urged these allied nations to deploy their own warships to secure the critical global oil route.
Notably, in May last year, the President secured a $600 billion investment commitment with Saudi Arabia and a $1.2 trillion economic agreement with Qatar.
Today in the oval office, Trump explained his reasoning behind the change.
‘I was called by different people, different countries. Kings and emirs… and they said, we’d love to do it a different way. We’d love to invest in the United States with billions and billions of dollars,’ Trump explained.
‘I like that actually because I don’t think anybody should be able to charge a fee for the strait.’
