Washington: US President Donald Trump announced on Tuesday a strategic shift in policy by replacing a proposed 20% reimbursement fee on cargo transiting through the Strait of Hormuz with trade and investment agreements involving Gulf states.

According to Anadolu Agency, Trump revealed his decision on his Truth Social platform, highlighting the results of productive discussions with Middle East leaders. He stated that the 20% United States Reimbursement Fee would be substituted with significant trade and investment deals. Trump emphasized that these investments would be substantial and mutually beneficial, predicting an influx of factories, plants, and equipment into the United States, creating millions of high-paying jobs for Americans.

Trump also commented on the current state of oil flow through the Strait of Hormuz, declaring it open to all ships except Iranian vessels, citing Iran's leadership as a reason for the exclusion. He announced a full blockade on ships associated with Iranian ports or cargo, asserting that Iran's history of violence and protest suppression was over and reiterating a commitment to prevent Iran from obtaining nuclear weapons.

Previously, Trump had proposed reinstating a blockade on Iran, taking on the role of securing the Strait of Hormuz and imposing a 20% fee on commercial vessels for security services. This follows a memorandum of understanding from June aimed at ending conflict, lifting a US blockade, and reopening the strait.

The geopolitical landscape remains tense, with recent US military strikes on Iran and retaliatory actions from Tehran. Both nations accuse each other of breaching agreements and vie for control over this crucial maritime corridor.